Nektan PLC Sale of gaming brands (7314H)
22 August 2016 - 4:00PM
UK Regulatory
TIDMNKTN
RNS Number : 7314H
Nektan PLC
22 August 2016
22 August 2016
Nektan PLC
("Nektan", the "Company" or the "Group")
Sale of three gaming brands for up to GBP1.95 million in cash,
plus five-year licensing agreement
Nektan plc (AIM: NKTN), a leading international mobile gaming
provider, has entered into an asset transfer and simultaneous
licensing agreement with Buckingham HMB Ltd ("Buckingham") for
three of the Company's wholly-owned gaming brands.
Buckingham will pay the Company a cash consideration of GBP1.75
million, with a further GBP200,000 expected to follow shortly, for
the assets, whilst simultaneously entering in to a five-year
licensing agreement with the Group for the continuing operation of
the brands under Nektan's white label Evolve platform for a monthly
royalty on terms consistent with other white label agreements the
Company has entered into.
The assets being transferred principally comprise the customer
databases, web domains and brands relating to Chomp Casino, Spin
Princess and Sapphire Rooms, which were all developed in-house. In
the year ended 30 June 2016, these brands in aggregate generated
Net Gaming Revenue ("NGR") of approximately GBP2.0 million, and
going forward the Company will continue to report the NGR relating
to these brands within its NGR, consistent with other white label
partners. The Company will recognise a profit on the sale in the
current financial year equivalent to the consideration
received.
The proceeds of the asset transfer will be used for the Group's
working capital requirements to further develop Nektan's business
in Europe and its US Joint Venture, Respin Inc.
Leigh Nissim, Chief Executive of Nektan, commented:
"Since formally joining the Company on 25 July, we have begun to
refine our structure to bring tighter focus and to optimise our
businesses in Europe and the US. As part of this process, the
transfer of these brand assets coupled with the long term white
label licensing agreement is a positive step forward for the
business by providing additional working capital for the Group
while still benefiting from a share of the ongoing revenues of the
brands."
Related party transaction
Lindsay Shaw, the wife of Gary Shaw, the Company's Director of
Strategy, holds a partnership share of 8.45% in Buckingham and is
also a designated member of the partnership. As the spouse of a
director of the Company she is a related party and her
participation in the transaction through Buckingham constitutes a
"related party transaction" under the AIM Rules.
The Directors of the Company, other than Gary Shaw, consider,
having consulted with the Company's nominated adviser, Zeus
Capital, that the terms on which the related party is participating
in the transaction are fair and reasonable insofar as the Company's
Shareholders are concerned.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information on the Group, please contact:
Nektan via Newgate below
Leigh Nissim, Chief Executive
Zeus Capital Limited (Nominated Adviser Tel: +44 (0)20 3829 5000
& Broker)
Giles Balleny, Nicholas How (Corporate
Finance)
Adam Pollock (Corporate Broking)
Newgate (PR Adviser) Tel: +44 (0)20 7680 6550
James Benjamin Em: nektan@newgatecomms.com
Zoe Pocock
Alex Shilov
Lydia Thompson
Further information on Nektan can be found on the Company's
website at www.nektan.com
About Nektan:
Nektan is a leading international B2B mobile gaming solutions
and services provider, operating in the regulated, interactive real
money gaming (RMG) gaming space, delivering original and innovative
solutions to commercial organisations that have established online
audiences.
Nektan's full end-to-end technology platform, Evolve, simplifies
and supports the route to mobile and desktop gaming revenues,
managing the full customer experience and back-office operations,
allowing commercial partners to focus on marketing the product to
their consumers.
About ReSpin LLC:
Respin LLC located in Reno Nevada, was formed in 2015 by Spin
Games LLC and is currently a joint venture with Nektan PLC. The
company develops disruptive technologies to roll out on- property
mobile gaming solutions for land-based casino operators across
North America where there is legalised gambling. Respin specialises
and offers solutions which allow operators to add mobile technology
and content to their existing offerings, with products to be made
accessible to customers across both cabinets and mobile devices
inside the casinos. Respin has a strong intellectual property
portfolio including game patents for Rapid Games(TM) (on-property
mobile entertainment), and other captivating concepts and
brands.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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