Huge Group has increased its stake in Eyeballs Mobile Advertising and now controls 96% of the company.
The group, which is listed on the Johannesburg Stock Exchange's AltX board, has revealed it has concluded a deal to acquire 12 000 ordinary shares in the mobile advertising company. The deal gives Huge another 12% of the total issued share capital of Eyeballs, of which it previously owned 84%.
Huge first invested in Eyeballs in 2008 and secured a controlling stake in March 2009 when it increased its ownership from 25% to 77%.
The sale agreement of the additional 12% was conditional on Eyeballs entering into a licensing agreement with a subsidiary company of a global platform operator of Internet, e-commerce, media and social network services.
The licensing agreement with the unnamed 'global platform operator' allows it to adapt, modify and enhance the computer code and supporting materials that comprise the Eyeballs technology and software. It also allows the integration of Eyeball's software into the licensee's hosting servers, and allows the use of software and enhancements to develop, market and sell advertising rights in the form of mobile billboards.
The licensee will pay Eyeballs an uncapped licence fee equal to a percentage of the global revenue generated through the licensing agreement.
"The board of directors of Huge and of Eyeballs are of the opinion that the conclusion of the licence agreement possibly marks a change in the fortunes of Eyeballs."
Huge says the unnamed licensee is a subsidiary of a global company that has "the balance sheet and reach to ensure the successful commercialisation of the software, including the generation of advertising revenue".