Gaming Realms to buy RealNetworks assets; announces share placing

(ShareCast News) - Shares in Gaming Realms fell heavily as the company said it has placed 50m shares to fund the acquisition of gaming assets from RealNetworks Inc.Gaming Realms, which creates and develops interactive next generation online gaming products, said it has conditionally agreed to acquire to acquire the assets for a total consideration of $18m. This is comprised of a $10m cash payment on completion and two tranches of $4m each in deferred consideration, payable 12 and 24 months after completion, respectively.Up to 50% of each tranche of deferred consideration can, at the election RealNetworks, be satisfied by the issue of ordinary shares in the company.To fund the acquisition, Gaming Realms has conditionally raised £12.5m through the proposed placing of up to 50m new shares at 25p per share.The placing will fund up to $14m of the consideration in respect of the acquisition and will also provide ongoing working capital for the enlarged group.At 12:55, shares were down 13.7% at 26.75p.