NPT.L Regulatory News (NPT)

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NetPlay TV plc

¡ £2.5m raised through successful Placing

Highlights

¡ Successfully raised gross proceeds of £2.5m

¡ Funds will significantly strengthen the Group's balance sheet, enable the completion of the Group restructure and ensure sufficient funding to return the Company to sustainable profitability

NetPlayTV (AIM: NPT), the interactive gaming company, announces that, following a process to solicit proposals for a subscription of Ordinary Shares, the Company has conditionally raised £2.5 million before expenses (approximately £2.41 million net of expenses) through a placing of 83,333,334 Ordinary Shares at a price of 3 pence per share (the "Placing Price"), conditional only upon the approval of the issue and allotment of such shares by the shareholders of the Company (the "Placing").

A circular will today be posted to shareholders convening a General Meeting of the Company scheduled for 1100hrs on Monday, 22 November 2010 at Battersea Studios, 80 Silverthorne Road, Battersea, SW8 3HE. The circular will be available on the Company's website www.netplaytv.com.

The Company believes the Placing will significantly strengthen the Group's balance sheet, enable the completion of the Group restructure and ensure sufficient funding to return the Company to trading profitability.

The Placing Price is below the nominal value of the Company's shares, which is 5p. Accordingly, in order to facilitate the Placing, the Directors are proposing a reorganisation of the Company's share capital by way of a subdivision of share capital, full details of which are set out in the Circular to shareholders.

Application will be made for the Ordinary Shares issued pursuant to the Placing to be admitted to trading on AIM.

Directforce Trading Limited ("Directforce") (which at the date of this document holds an interest in 29.7 per cent. of the Existing Issued Share Capital) and Gartmore Investment Ltd ("Gartmore") (which at the date of this document holds an interest in 14.1 per cent. of the Existing Issued Share Capital) are classified as related parties of the Company for the purposes of the AIM Rules by virtue of having a substantial shareholding (as defined by the AIM Rules) in the Company. As a result, Directforce and Gartmore's participation in the Placing will constitute a related party transaction for the purposes of the AIM Rules (a "Related Party Transaction"). 

In addition, Martin Higginson (Chief Executive), Charles Butler (Managing Director), Andrew Lapping (Non-Executive Director), Graham Stevens (Non-Executive Director) and Guy Templer (Chief Operating Officer) have agreed to subscribe in the Placing and, as a result of being Directors of the Company, their participation in the Placing also constitutes a Related Party Transaction.

The Directors, having consulted with the Company's nominated adviser, Panmure Gordon, consider that the Related Party Transaction is fair and reasonable so far as the Shareholders are concerned.

Following admission of the new Ordinary Shares the Company will have 279,724,649 Ordinary Shares in issue.

Commenting on the placing Clive Jones, Non Executive Chairman of NetPlayTV, said:

"The funds raised through this placing will ensure NetPlayTV is able to complete its restructuring. And, we believe with a renewed focus on its core "live" casino products will allow the business to return to a sustainable profitable state. We will keep the market updated of future developments."

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About NetPlayTV plc

NetPlayTV TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlayTV TV operates a number of interactive gaming services under UK, Malta and Alderney gaming licenses, including SuperCasino.com, ChallengeJackpot.com and Bingos.com. These services can also be viewed 24 hours a day live on Sky Channel 866 and 867, every evening on the terrestrial channels, Five, and STV, plus Freeview on Virgin 1, 1am - 4am and Bravo 2 and 24/7 on Virgin Media channel 141.

The Company is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.