22 Aug 2016 07:00
22 August 2016
Nektan PLC
("Nektan", the "Company" or the "Group")
Sale of three gaming brands for up to £1.95 million in cash, plus five-year licensing agreement
Nektan plc (AIM: NKTN), a leading international mobile gaming provider, has entered into an asset transfer and simultaneous licensing agreement with Buckingham HMB Ltd ("Buckingham") for three of the Company's wholly-owned gaming brands.
Buckingham will pay the Company a cash consideration of £1.75 million, with a further £200,000 expected to follow shortly, for the assets, whilst simultaneously entering in to a five-year licensing agreement with the Group for the continuing operation of the brands under Nektan's white label Evolve platform for a monthly royalty on terms consistent with other white label agreements the Company has entered into.
The assets being transferred principally comprise the customer databases, web domains and brands relating to Chomp Casino, Spin Princess and Sapphire Rooms, which were all developed in-house. In the year ended 30 June 2016, these brands in aggregate generated Net Gaming Revenue ("NGR") of approximately £2.0 million, and going forward the Company will continue to report the NGR relating to these brands within its NGR, consistent with other white label partners. The Company will recognise a profit on the sale in the current financial year equivalent to the consideration received.
The proceeds of the asset transfer will be used for the Group's working capital requirements to further develop Nektan's business in Europe and its US Joint Venture, Respin Inc.
Leigh Nissim, Chief Executive of Nektan, commented:
"Since formally joining the Company on 25 July, we have begun to refine our structure to bring tighter focus and to optimise our businesses in Europe and the US. As part of this process, the transfer of these brand assets coupled with the long term white label licensing agreement is a positive step forward for the business by providing additional working capital for the Group while still benefiting from a share of the ongoing revenues of the brands."
Related party transaction
Lindsay Shaw, the wife of Gary Shaw, the Company's Director of Strategy, holds a partnership share of 8.45% in Buckingham and is also a designated member of the partnership. As the spouse of a director of the Company she is a related party and her participation in the transaction through Buckingham constitutes a "related party transaction" under the AIM Rules.
The Directors of the Company, other than Gary Shaw, consider, having consulted with the Company's nominated adviser, Zeus Capital, that the terms on which the related party is participating in the transaction are fair and reasonable insofar as the Company's Shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information on the Group, please contact:
Nektan Leigh Nissim, Chief Executive | via Newgate below
|
Zeus Capital Limited (Nominated Adviser & Broker) Giles Balleny, Nicholas How (Corporate Finance) Adam Pollock (Corporate Broking) |
Tel: +44 (0)20 3829 5000
|
Newgate (PR Adviser) James Benjamin Zoe Pocock Alex Shilov Lydia Thompson |
Tel: +44 (0)20 7680 6550 Em: nektan@newgatecomms.com |
Further information on Nektan can be found on the Company's website at www.nektan.com
About Nektan:
Nektan is a leading international B2B mobile gaming solutions and services provider, operating in the regulated, interactive real money gaming (RMG) gaming space, delivering original and innovative solutions to commercial organisations that have established online audiences.
Nektan's full end-to-end technology platform, Evolve, simplifies and supports the route to mobile and desktop gaming revenues, managing the full customer experience and back-office operations, allowing commercial partners to focus on marketing the product to their consumers.
About ReSpin LLC:
Respin LLC located in Reno Nevada, was formed in 2015 by Spin Games LLC and is currently a joint venture with Nektan PLC. The company develops disruptive technologies to roll out on- property mobile gaming solutions for land-based casino operators across North America where there is legalised gambling. Respin specialises and offers solutions which allow operators to add mobile technology and content to their existing offerings, with products to be made accessible to customers across both cabinets and mobile devices inside the casinos. Respin has a strong intellectual property portfolio including game patents for Rapid Games™ (on-property mobile entertainment), and other captivating concepts and brands.