Applabs Technologies’ (ASX:ALA) Fee for Service division has entered into a new contract with Loyalty App Pty Ltd that is worth $82,500 for the first stage development for the customer rewards market.
It has also elected to retain a 5% equity stake in Loyalty App, which provides a platform for businesses to reward customer loyalty and gives consumers access to incentives and deals from businesses.
The stage one development is expected to be completed over the next five months.
Loyalty App has also entered into a further 12 month Development Contract with Applabs, at an agreed hourly rate, which will allow for further development to be undertaken after stage one is complete.
“We are extremely excited by the Loyalty App project, and having experienced business operators involved as founders, further enhances the potential success of the application,” managing director Patrick Glovac commented.
“The demand for rewards based applications has been highlighted with the recent IPO of Rewardle (ASX:RXH). Applabs has elected to take a 5% equity stake in Loyalty App for nil consideration, which will allow Applabs shareholders to share in the potential success of the application.”
The Loyalty App contract will see Applabs develop an iPhone App, Android App and a mobile optimised web application.
From the business perspective, Applabs has also been contracted to develop a merchant iPad application.
Earlier this week, the company flagged that its Fee for Service division continued to attract new business and was close to finalising several new contracts.
It has a strong cash position of $3.86 million and $450,000 in tradeable securities in September.
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