(Alliance News) - Gaming industry marketing firm Veltyco Group PLC on Thursday said it raised GBP500,000 following a loan note conversion, and that it was looking to acquire the remainder of Bet90.
Veltyco said the convertible loan notes have a three-year term and a 5.0% annual coupon, payable on June 30 and December 31, with the first installment due to be paid on June 30, 2020. The convertible loans are convertible at any time at a price of 5 pence per new ordinary share.
The stock was up 8.7% at 3.75 pence in London on Thursday.
Elsewhere, Veltyco said it has entered into a non-binding agreement with Binbar GmbH to acquire the 49% of Quasar Holdings Ltd it does not already own.
Quasar owns online sportsbook and casino gaming company Bet90 Sports Ltd, and Veltyco currently holds a 51% stake in Quasar and therefore, should the acquisition complete, Veltyco will own Quasar outright.
The proceeds of the December convertible loan will be used to satisfy the cash consideration of the acquisition and provide general working capital, the company said.
Under the terms of the deal, Veltyco will issue 5 million new ordinary shares, pay an initial cash consideration of EUR200,000 and ten monthly cash instalments of EUR30,000.
On the trading front, the company said it continues to manage cash resources "carefully" given that it is reliant on being able to manage its creditor balance.
"Should the potential acquisition complete, we believe that this would be a crucial step in the roll-out of the group's new strategy, which is completely focused on regulated online sportsbook and casino operations and expanding these operations in additional territories. We are looking to partner with external experts and expand online operations, with a view to increasing marketing efforts for brand recognition and driving additional traffic to our platform," said Chair Paul Duffen.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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