Mobile content and services provider MobileActive (ASX:MBA) intends to shift its focus to its business-to-business division, and to change its name to reflect the new emphasis.
In an operational update, MobileActive said it will concentrate on achieving growth through B2B interactive services and technology division Mobile Embrace.
The company said its retail business was now operating in a heavily regulated industry - driving up operating costs - and in a difficult trading environment. This business will now be phased out over time.
Mobile Embrace aims to become an end-to-end mobile marketing, publishing, messaging and commerce service provider.
To reflect the new focus, MobileActive is proposing to change its name to Mobile Embrace, and will ask shareholders to vote on the renaming on June 30.
Shareholders will also be asked to approve an up to $1.5 million placement to help commercialise the nascent business.
MBA shares rose 9.37% in Tuesday's trading to $0.035 after the announcement was made.
If the name change takes effect the company will apply to change its ASX code to MBE.
The company last week announced it had launched a high-speed SMS gateway with the major Australian operators, after previously negotiating direct carrier agreements with all three.
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