Monitise's share price has plummeted this morning, after the company revealed it is open to takeover bids to keep the mobile banking business going.
The British firm said this morning it was undertaking a strategic review "in light of recent share price weakness, shareholder feedback and industry developments". The review will consider the possibility of corporate takeovers and alternative stock market listing options.
Monitise has appointed Moelis & Company as financial adviser and Canaccord Genuity as nomad and broker.
It said the board believed the Aim-listed group had "an exciting future as an independent business", but noted that "there may be other businesses" that could help "accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today".
Monitise co-chief executives Alastair Lukies and Elizabeth Buse said in a joint statement: "We have a winning formula based on a combination of world-class design serving a wide range of sectors, configurable products for omni-channel solutions via API delivery, an extraordinary range of partners and the exceptional talent and experience of our teams.
"In our business and the review we are now embarking on, we remain focused on ensuring the best possible outcome for all Monitise stakeholders."
Monitise's share price was down 12.5 per cent in early trading this morning.
The move comes as the banking business revealed first half-year revenues of £42.4m, down from £46.5m last year, with full-year revenues now expected to come in at between £90m and £100m.
Subscription and transaction revenues were up eight per cent to £16.2m, but licence revenue dropped a dramatic 47 per cent to £4.4m. Development and integration revenue also fell 13 per cent to £21.8m
"The change in revenue mix is consistent with Monitise's business model transition," the company said. It added that its gross cash levels - £129m - "provides balance sheet strength to see Monitise through to cash flow breakeven and beyond".
There has been an increase in registered end users from 30m in June 2014 to 33m at the end of December. Monitise's total user count now exceeds 82 million.