Nektan PLC Company Update (5433P)
09 February 2019 - 2:01AM
UK Regulatory
TIDMNKTN
RNS Number : 5433P
Nektan PLC
08 February 2019
8 February 2019
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Company Update
Further to its announcement released earlier today that all
resolutions were passed at its AGM which would allow all
inter-conditional transactions detailed in its circular to
shareholders, dated 11 January 2019 ("Circular"), and announcement
of 14 January 2019, Nektan plc (AIM: NKTN) provides the following
update.
Summary
The Company announces that it has received more support for the
placing and subscription than previously announced, with demand
currently at GBP2.2 million. However, there is a short delay in
executing all transactions described in the Circular due to further
due diligence being undertaken on the proposed sale of the majority
shareholding of Respin.
Respin
Although the proposed sale of the majority shareholding of
Respin is progressing, the buyer's due diligence processes, the
completion of which would allow it to enter into a binding contract
with the Company, remain ongoing. The Company expects to enter into
a binding contract for the sale as soon as possible, but in any
event no later than 30 April 2019. This coincides with the
expiration of the authority provided by shareholders at the
Company's AGM for the issue by the Company of new shares at 15
pence per share by way of a placing and subscription to raise up to
GBP3.5 million.
Placing and Subscription
The Company has entered into Subscription Agreements to date
under which subscribers will invest a total of GBP2.2 million into
the Company. This is significantly above the minimum of GBP1.5
million set out in the Circular. In addition, the Company has also
received further expressions of interest which may increase the
funds raised pursuant to the placing and subscription prior to 30
April 2019. Once the date of the Respin transaction is confirmed
the Subscription Agreements will be updated.
Debt Conversion and Facility Agreements
The position as set out in the Circular remains unchanged,
although given the inter-conditionality of all the transactions set
out in the Circular the Debt Conversion will complete
simultaneously with those other transactions.
CLN Conversion and Series A Amendment
The position as set out in the Circular remains unchanged.
However, the dates set out in the Amendment Deed will need to be
updated and the noteholder resolutions re-circulated. Agreed
conversions will also be reconfirmed in due course.
Inter-conditionality
All of the above transactions remain inter-conditional,
notwithstanding that all resolutions of the Board and the Company
at the AGM have been passed to approve and effect them. However,
upon a contractual commitment being entered into for the proposed
sale of the majority shareholding of Respin, all transactions will
complete simultaneously.
Current Working Capital sufficient
Other than as described above, the position as set out in the
Circular regarding the use of funds, working capital and dialogue
with HMRC remains unchanged. As previously announced, the Company
also remains on track to be EBITDA break-even in its European
operations by the end of FY19 (30 June 2019). The Company confirms
that it has sufficient working capital for its present
requirements.
A further announcement will be made in due course.
For further information on the Group, please contact:
Nektan
Lucy Buckley, Chief Executive Officer
Gary Shaw, Executive Officer +44 20 3463 8735
Stockdale Securities Limited
Tom Griffiths / David Coaten +44 20 7601 6100
Nominis Advisory (PR Adviser) +44 7 881 625 098
Angus Campbell Email: angus@nominis.co
Further information on Nektan can be found on the Group's
website at www.nektan.com
About Nektan:
Nektan is an international B2B and white label gaming software
and services provider, operating in the regulated, interactive real
money gaming (RMG) 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.
Nektan's US operating subsidiary, provides US land-based casinos
with in-venue mobile gaming solutions which allow operators to add
mobile technology and content to their existing offerings, with
products accessible to players across both cabinets and mobile
devices inside the casinos. Respin has a strong intellectual
property portfolio including game patents for Rapid Games
(on-property mobile entertainment), and other captivating concepts
and brands.
Nektan is headquartered in Gibraltar, regulated by the Gibraltar
Licensing Authority and the UK Gambling Commission, as well as in
the Irish market and maintains sales and customer support
operations in Europe and North America. The proprietary Evolve
technology is developed and maintained by a talented and
experienced team of employees from Nektan's Indian office.
Nektan plc was admitted to the AIM market of the London Stock
Exchange in November 2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
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contact rns@lseg.com or visit www.rns.com.
END
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