LONDON (Alliance News) - Gaming Realms PLC said Tuesday it has sold its third party platform driven website properties for GBP2.9 million to Silverspin Media Ltd and Blackspark Ltd.
Blackspark will pay an up-front cash payment of GBP1.2 million, with an additional GBP500,000 to be paid via a transitional services agreement over the next five months.
The GBP1.2 million consideration owed by Silverspin will be netted off against final earn out payments due to the vendors Gaming Realms had previously bought the assets from as part of a three year earn out in 2016 and 2017. Gaming Realms agreed with the vendors that it will pay a final consideration payment due to be settled by the issue of GBP1.2 million through the issue of 4.8 million shares at a price of 25 pence on completion.
Shares in Gaming Realms closed flat at 19.00 pence Tuesday.
Losses associated with the assets being sold to Silverspin were around GBP430,000 for the fifteen months to end-December 2014.
Gaming Realms expects the deal to be completed around the end of February.
The company will retain its profitable Bingoport marketing business, it said, and will use the proceeds form the sales to develop new gaming content and marketing campaigns.
"Focusing on higher margin investment in our new mobile platform and achieving significant success within our own mobile content development is delivering stronger returns for Gaming Realms. Having end-to-end control of our offering has created a set of exciting opportunities in the UK, and more recently in the US, and these have become our strategic priority," said Chief Executive Officer Patrick Southon in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Gaming Realms (GMR)