Catalyst Media Regulatory News (CMX)

29 Jun 2006 07:02

Catalyst Media Group PLC29 June 2006 29 June 2006 Catalyst Media Group plc ("CMG" or the "Company") Online Gaming Platform CMG today announces that it is launching an on-line gaming platform completewith a suite of fixed odds and exclusive head to head games. CMG has acquired anexclusive five year licence from YooMedia plc ("YooMedia") for the head to headversion of Tringo, the compelling interactive game that is a combination ofTetris and Bingo and has agreed, subject to contract, to acquire the entireissued share capital of Spoof.com Ltd which has developed an on-line, head tohead version of the traditional pub game, "Spoof". The offering will alsoinclude fixed odds games such as Roulette, Keno and Dice games. CMG has alsoacquired a 5 year licence from YooMedia for the Engage technology platform whichwill enable gamers to play head to head cash or prize based games against eachother across mobile phone, pc and TV platforms. Under the agreement YooMediawill migrate the Spoof and Tringo products onto the Engage platform as well asproviding back office, payment fulfilment, gaming licence, customer support andtechnology facilities. Paul Duffen, CEO of CMG commented "The head to head gaming sector is an underexploited and potentially lucrative market with exciting growth prospects. Thisinitiative combines our experience in the distribution of on-line content withour recent focus on the gaming and betting industry as reflected in ouracquisition of a 22.16% stake in SIS last September. At the same time we areentering into a partnership with YooMedia which brings together their worldleading interactive technology and our expertise in marketing and distributionto portals, ISP's and on-line communities." The services and licences provided by YooMedia to CMG will cost a total of£2,000,000.07, which will be satisfied by the issue of 44,444,446 million newCMG shares at 4.5 pence per share. 32.78 million shares will be issuedimmediately and the remaining 11.66 million shares will be issued once theintegration work is completed. 29,629,630 of the new shares will be subject tolock-in arrangements for a period between three and six months and subject toorderly market arrangements there after. CMG acquired 9.09% of Spoof.com Ltd in November 2005 for £25,000. The agreedacquisition of the remaining 90.91% is being valued at £2,272,749.84, which willbe satisfied by the issue of 50,505,552 new CMG shares at 4.5 pence per share.There will be lock-in arrangements on all shareholders who currently own morethan 10% of Spoof.com Ltd in that they can only sell 50% of the shares theyacquire in CMG during the first six months following the transaction subject toorderly market arrangements. On the 30th January 2006 CMG announced a post tax loss of £7.3 million for the12 month period to 31st October 2005 and a change of accounting period to 31stMarch 2006. The Company intends to announce its preliminary results for the 17month period to 31st March 2006 shortly and expects to report that the last 5months of the period produced a post tax profit in the region of £1 million. This information is provided by RNS The company news service from the London Stock Exchange