Consumer mobile email play AxisMobile is considering a possible share placing in Canada to help fund expected fast growth.

Israel-based Axis, which claims its strong intellectual property portfolio ensures a leading place in this fast-developing market, should break-even in 2008 after losing nearly £8 million in 2006 and £2.5 million in the first half of last year, says chief executive Mr Sharon David. He argues the AIM-quoted company should increase turnover from a mere £280,000 in 2007 to £4.7 million this year after signing up a string of corporate wholesale customers, such as Vodafone, Telstra and Huawei of China for mass-market products, including new generation ‘push email’ and boasting a ‘flexible mobile email solution on any data-enabled device’.

According to David the revenue surge expected this year from these new customers should take Axis, which is also considering offering some services direct to the public, into the black by the end of the year. He says the company, which recently agreed a near-£1 million loan facility with the SVM-Israel group, has been talking to its brokers and others about a possible new equity funding, which could possibly involve a listing in Canada.

Floated at 10p in 2005, Axis Mobile shares soon soared to 147.5p, but more recently they have taken a pounding. Now 39p, they value the company at £11.5 million and could offer speculative recovery possibilities if any new funding is on reasonable terms and the new customers provide the expected revenues.

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Axis ponders new funding			22/01/2008