My Rewards International Unveils Klevo Card While Navigating Financial Hurdles
MRI (MRI) Share Update October 2024 Thursday 31st
My Rewards International Launches New Travel Cashback Card Amidst Financial Challenges
My Rewards International Limited (ASX: MRI) has announced the soft launch of its new Klevo MasterCard, a rewards travel card designed for Australian travelers and expatriates, amidst ongoing financial challenges and suspension from ASX quotation.
Instant Summary:
- Appointment of Alexander Gold as CEO and Managing Director.
- Launch of Klevo MasterCard in collaboration with Fly Wallet Pty Ltd.
- Klevo Card offers 1% cashback on global spending and higher rewards in Thailand.
- MRI remains suspended from ASX due to financial condition concerns.
- Net cash used in operating activities for the quarter was $319K.
Leadership and Strategic Initiatives
As of 20 September 2024, My Rewards International Limited welcomed Mr. Alexander Gold as the new Chief Executive Officer and Managing Director. His leadership is expected to steer the company through its strategic initiatives and financial challenges.
Launch of Klevo MasterCard
The company has announced the soft launch of the Klevo MasterCard, a rewards travel card, in collaboration with Fly Wallet Pty Ltd. The launch event is set for 5 November in Bangkok, Thailand, during the Melbourne Cup charity lunch at the Dusit Thani hotel. This card is part of MRI's global rewards initiative aimed at offering Australian travelers and expats a financially rewarding travel experience.
Users of the Klevo Card will enjoy 1% cashback on all global spending outside Australia, with higher cashback rates from partner vendors in Thailand, including restaurants, hotels, and medical centers. This initiative aligns with the growing trend of Australians seeking wellness and long-stay experiences abroad.
Financial Challenges and ASX Suspension
Despite these positive developments, MRI faces significant financial challenges. The company was suspended from ASX quotation on 2 October 2023 due to inadequate financial conditions as per ASX Listing Rule 12.2. MRI is working to rectify the disclaimed audit opinions in its 2023 Annual Report to regain compliance and lift the suspension.
The net cash used in operating activities for the quarter ending 30 September 2024 was $319K. The company has also reduced its loan to iGoDirect to $145,657.48 and is in the process of finalizing its financial statements for the half-year ending 31 December 2023.
The launch of the Klevo Card could bolster MRI's position in the rewards and loyalty market, potentially attracting more customers and generating additional revenue. However, the ongoing suspension from ASX and financial challenges may overshadow these positive developments, affecting investor confidence and stock performance.
Investor Reaction:
Analysts may view the launch of the Klevo Card as a positive step towards innovation and market expansion. However, concerns about the company's financial health and ASX suspension may lead to cautious investor sentiment.
Conclusion:
Investors should closely monitor My Rewards International's efforts to resolve its financial issues and the market reception of the Klevo Card. The company's ability to navigate these challenges will be crucial in maintaining shareholder value and restoring confidence.