Boku Inc. (LON:BOKU), a leading global provider of mobile payment solutions, through a subsidiary, has entered into a new multi-year commercial agreement with a subsidiary of Amazon.com, Inc. for Boku Payments to supply its digital wallet and other local payment methods to Amazon.
New agreement with Amazon
The Agreement, which has an initial three year term from launch with one year renewal periods, covers the processing of payments for Amazon Prime Video subscriptions through Amazon’s primevideo.com site for customers located in certain countries in South East Asia and Africa. Boku’s revenue from Amazon will be based on a percentage of Prime Video transaction value that it processes.
Concurrently, Boku has issued to Amazon warrants to subscribe for up to 11,215,142 shares of Boku’s common stock (“Common Stock”) representing up to 3.75% of Boku’s existing issued share capital, of which 747,676 shares, or 0.25%, vested on the issuance of the warrants, and the balance vests based on Amazon achieving certain revenue targets over the next seven years. The warrant costs will be matched to and offset against revenues generated by Boku from Amazon.
The warrants are exercisable at 81.20p, which was the 30-trading day volume-weighted average price of Boku’s Common Stock immediately prior to issuing the warrants. The warrants will be exercisable for ten years from the issue date. The warrants may be exercised in whole or in part by Amazon.
Jon Prideaux, Chief Executive Officer, Boku, commented:
“We are delighted to have entered into this new agreement with Amazon which demonstrates that one of the world’s most well-known brands has chosen Boku to process certain digital wallet payments, reinforcing Boku’s strategic move into these areas.”