The Mobile e-mail and synchronization whiz, Synchronica has forged a collaboration agreement with third parties to design, build, market and sell low cost mobile devices, to be rolled up with its mobile gateway product.

“The proposed Collaboration will enhance the Company''s prospects. It will allow the Company to complement its mobile email and synchronization product with a device-centric end-to-end solution, at a time when the Company believes mobile email as a tool for mass market communication is expected to grow significantly,” said Chief Executive Officer Carsten Brinkschulte on the development.

Under the terms of the proposed deal, the firm said it will receive royalties of 3 percent of sales of the devices, as well as fees for services and other income.

To fund the development and launch of low cost mobile phones, Synchronica, with the help of its advisor and broker, FinnCap, has raised £4,723,462 (gross) through a placing of 188,938,483 new Ordinary Shares of 1p each with new and existing institutional and private investors at a price of 2.5 p.

Mr. Carsten Brinkschulte too will participate in the Placing, subscribing for 2 million of the placing shares.

The Collaboration is expected to be for an initial term of four years.  

However, final discussions are yet to take place.