Stride Gaming PLC 8ball & InfiApps: agreed Earnout & Issue of Equity (9639Q)
18 September 2017 - 4:01PM
UK Regulatory
TIDMSTR
RNS Number : 9639Q
Stride Gaming PLC
18 September 2017
18 September 2017
Stride Gaming plc
("Stride Gaming", the "Company", or "the Group")
8ball and InfiApps - agreed Earnout and Issue of Equity
Stride Gaming plc (AIM: STR), a leading online gaming operator,
is pleased to announce that it has today agreed the final earn-out
consideration payable in respect of its August 2016 acquisition of
8ball Games Limited ("8ball").
The 8ball's financial performance has been in line with the
Board's expectations, achieving an unaudited Adjusted EBITDA of
GBP4.18m for the period to 31 August 2017.
The agreed final earnout consideration is GBP13,092,000 (the
"Earnout Payment"). The Earnout Payment will be split as previously
agreed, with GBP9,055,200 satisfied by the issue of 4,117,482 new
ordinary shares of 0.01p each ("Earnout Shares") and GBP4,036,800
payable in cash.
As set out in the circular to shareholders dated 3 August 2016,
the Earnout Payment is based on a multiple of 6 times 8ball's
Adjusted EBITDA for the 12 month period following completion, less
the initial consideration which will be settled in a mix of cash
and Earnout Shares. Of the Earnout Payment, the first GBP3,000,000
is satisfied by the issue of 1,333,333 Earnout Shares calculated by
reference to the August 2016 placing price of 225 pence. The
remaining consideration is split 40% in cash and 60% in shares;
being 2,784,149 Earnout Shares calculated as the first GBP1,000,000
to be satisfied at 225p being the placing price of the August 2016
placing and the reminder by reference to the average closing price
of the Ordinary Shares for the 90 day period ending on 31 August
2017.
The Earnout Shares are subject to a lock-in arrangement, under
which the Company must agree to any sale of these shares for a
period of 12 months from date of issue.
An application will be made shortly for the 4,117,482 Earnout
Shares to be admitted to trading on AIM, with admission expected to
take place on 30 September 2017 ("Admission"). Following Admission,
the Company's issued share capital will consist of 72,077,600
Ordinary Shares.
In addition, the Company is pleased to announce that the final
earnout consideration payable in respect of its acquisition of the
social gaming operation, InfiApps Limited, in August 2015, has been
agreed at $1,200,000 and satisfied in cash.
Eitan Boyd, Chief Executive of Stride Gaming, commented:
"We are delighted with the performance of 8ball over the period.
Its integration into the wider group has begun successfully and we
are already seeing synergies materialise.
"Having based the consideration around EBITDA performance we
have been able to effectively ensure alignment of incentives.
8ball's performance since acquisition has clearly demonstrated our
capability to acquire and integrate quality businesses, in line
with the Group's growth strategy."
Enquiries:
Stride Gaming plc
Nigel Payne (Non-Executive Chairman)
Eitan Boyd (Chief Executive Officer) +44 (0)
Ronen Kannor (Chief Financial Officer) 20 7284
www.stridegaming.com 6080
Shore Capital (Nominated Adviser
and Joint Broker) +44 (0)
Mark Percy 20 7408
Toby Gibbs 4090
Canaccord Genuity Limited (Joint
Broker)
Bruce Garrow +44 (0)
Emma Gabriel 20 7523
Richard Andrews 8000
Yellow Jersey PR
Felicity Winkles +44 (0)
Georgia Colkin 776 932
Joe Burgess 5254
About Stride Gaming plc:
Stride Gaming plc, listed on AIM, is a leading online gaming
operator. The Company operates a multi-branded strategy, using a
combination of its proprietary and licensed software to provide
online bingo and slot gaming and a social gaming mobile
application.
Stride Gaming's real money offering is presently focused on the
UK market, where it is licensed and only operates from the
regulated jurisdictions of the UK and Alderney. The Company has an
international reach in the mobile social gaming market with a focus
on North America. With a diverse portfolio of 126 brands, Stride
Gaming is the fourth largest online bingo operator in the UK, and
has over 25% share of the UK online bingo landscape.
Stride operates a B2B platform, Stride Together, through which
the company licences its proprietary platform to gaming operators,
media partners and retailers in the UK and globally, enabling them
to create an online presence for their customers and enabling
Stride to penetrate new and non-bingo verticals both within UK
markets and overseas territories.
Further information on the Group is available at:
www.stridegaming.com
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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