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Synchronica positive

By BFN News | 07:48 AM | Monday 21 November, 2011

Mobile messaging specialist Synchronica said it has now completed the majority of its corporate reorganisation and is negotiating deals with several major customers. Management has also taken the initiative to restructure the technical development and client service functions in its Research and Development centres. Strategic research and development is now carried out by Synchronica's Berlin and Montreal facilities, while the Company has further leveraged its lower-cost Mumbai and Manila facilities for specific client code development. The Company's cost reduction initiatives, which will be fully implemented at the end of the current quarter, for the period ending December 31st, 2011, will align Synchronica's costs with its current recurring revenue stream, and will see license and professional service income fall straight through to profit. The company expects to file its financial statements for the Quarter-ended September 30th, 2011 and the accompanying Management Discussion and Analysis (MD&A) with SEDAR before 29th November 2011. Synchronica also announced that it has acquired the third party messaging software which had delayed the production of handsets based on MediaTek technology. The Company's R&D facilities have now commenced code development and are focused on expediting the delivery of the software. Synchronica expects that it will release a beta version before the end of the current Quarter, with a final version of the software being released four weeks later. Synchronica will also provide the software as part of its MediaTek Toolkit. This complete set of technical and commercial resources provides Synchronica with a key competitive advantage that enables MediaTek device manufacturers to effortlessly integrate advanced messaging services onto their mass-market handsets. In accordance with the terms and conditions of the private placement which Synchronica completed in North America in July 2011, the Company is also announcing the conversion of all subscription receipts issued in that transaction into a total of 30,765,000 ordinary shares of the Company, as well as 15,382,500 warrants. Each warrant is exercisable at C$0.25 per ordinary share (current equivalent £0.155 per ordinary share) at any time until November 17, 2014. Synchronica is presently negotiating large license deals with several high-profile customers, while also working with existing customers on initiatives to stimulate user uptake of their services. The Company remains confident that 2011 will continue to provide positive results with a more predictable revenue and cash inflow. Story provided by

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