12 May 2009 07:00
| Date: | 12 May 2009 |
| On behalf of: | NetPlay TV plc ('NetPlay TV', 'the Company' or 'the Group') |
| Embargoed for: | 0700hrs |
NetPlay TV plc
Completion of acquisition of trading assets of Two Way Gaming Ltd
Virgin Media Television takes 9.9% option in NetPlay TV
Placing to raise £800,000 at 18p per share
Completion of deal with Virgin Media Television and 9.9% option
NetPlay TV plc (AIM: NPT), the interactive gaming company, is pleased to announce that it will take over the production of the 'Challenge Jackpot' brand, including its website and television channel, on behalf of Virgin Media Television as announced on 7 April 2009. The channel airs 24/7 on Virgin Media and Sky, plus three hours per day with live presenters on Bravo 2 and Virgin1, extending the brand into Freeview homes. Customers are able to play a range of games, including live TV roulette and a series of web games. Further Internet and mobile games are expected to follow.
The Group will continue to develop its own brands, SuperCasino.com, Bingos.com and EuroTeleMillions.com while involved in this collaboration.
As part of the transaction, Virgin Media Television entered into an option agreement over 9.9% of the total issued shares in NetPlay TV plc calculated after the issue of shares as part of the transaction with Two Way Gaming described below, and after the placing referred to below ("Option Agreement"). The Option Agreement will run alongside NetPlay TV's production and gaming agreements with Virgin Media Television. The strike price for the options is 18p per ordinary share. The options are subject to an orderly market clause which will run in conjunction with the agreement and are exercisable from the first anniversary of its signing.
Issue of share consideration for the acquisition of the trading assets of Two Way Gaming Ltd (the 'Acquisition') and placing of new ordinary shares (the 'Placing')
Further to the announcement on 7 April 2009, NetPlay TV has completed the acquisition of the trading assets of Two Way Gaming Limited. The Acquisition includes the transfer of Challenge Jackpot's circa 16,000 registered players, their account balances and the equipment to run the business.
The consideration has been satisfied by the issue of 8,533,333 ordinary shares, and they are expected to be admitted to trading on AIM on Friday 15 May 2009.
In order to fund certain transaction related expenses and reorganisation costs the Company has undertaken a small private placing to raise £800,000 of new money through the issue of 4,444,444 ordinary shares of 5p each ('Ordinary Shares') at 18 pence per Ordinary Share ('Placing Shares'). The Placing was supported by Martin Higginson, CEO of Netplay, Andrew Lapping, Non Executive Director of NetPlay, as well as certain existing institutional shareholders in the Company. It is expected that the Placing Shares will be admitted to AIM later today.
Martin Higginson, Executive Chairman and Chief Executive Officer, NetPlay TV plc said:
"We are extremely pleased to be entering into this arrangement with Virgin Media Television. The combination of the established Challenge Jackpot brand with our vision for converged gaming solutions will be a powerful force. From our perspective, it allows us to offer gaming services to a new set of customers, thus broadening our demographic reach considerably.
"Over the last 12 months NetPlay TV has made a lot of progress, we have moved from the losses incurred during our first year of establishing the business in its current guise to a solid, sustainable and profitable business. Our SuperCasino.com business is now recognised as the market leader in the converged TV and internet space. Our Bingo business is stable following moving it to the UK and we are ready to re-launch the various European websites under their new brand, EuroBingo.com. The recent launch of EuroTeleMillions.com adds another brand to our portfolio, one we can in time expand into Europe.
"Over the past two years we have transformed the business into a truly unique TV, internet and mobile offering. Our customers can access our games through a variety of different mediums no matter where they are. Our dedication to building a solid and sustainable set of brands has allowed us to increase "Life Time Values" of the customer and in turn, profit generated from these businesses. We continue to focus on delivering the very best customer experience as we strive to become the destination of choice for our players."
Jonathan Webb, Managing Director of Virgin Media Television, said:
"I'm delighted that NetPlay TV will be building on the work of Two Way Gaming in establishing Challenge Jackpot in the market. NetPlay TV's expertise in convergent gaming fits with our ambition to totally integrate the gaming experience between internet, TV and mobile. I look forward to working with them to build on those foundations and take the brand to the next level of success."
-Ends-
Enquiries:
| NetPlay TV plc | www.netplaytv.plc.uk |
| Martin Higginson, Executive Chairman and Chief Executive Officer | Via Redleaf |
| Redleaf Communications | Tel: 020 7566 6700 |
| Emma Kane / Mike Ward | netplay@redleafpr.com |
| Panmure Gordon | |
| Andrew Burnett | Tel: 0151 243 0986 |
| Katherine Roe | Tel: 020 7459 3600 |
| Stuart Gledhill |
Notes to Editors:
Publication photographs are available from Redleaf Communications or www.redleafpr.com
About NetPlay TV plc
NetPlay TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlay TV operates a number of interactive gaming services under a UK gaming license, including 'Live Roulette' ™ and 'Live BlackJack, www.supercasino.com, 'Live Roulette' and 'Autowheel' can also be viewed live on television on Sky Channel 866. 'Live BlackJack' is broadcast live on the Internet www.supercasino.com from 9pm.
In April 2008, NetPlay TV acquired Bingos.com, an established pan-European online bingo operator with over one million registered players. Bingos.com currently operates as an Internet site in the UK, Spain, Italy, Poland and Sweden.
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.
About Virgin Media Television
Virgin Media Television (VMtv) has seven wholly-owned channels, some of the strongest entertainment brands in UK multichannel television: LIVING, LIVING2, Bravo, Bravo 2, Challenge, Challenge Jackpot and Virgin1. The portfolio spans pay and free-to-air television - reaching over 24 million adult viewers each month - and has a growing presence on broadband, mobile and on-demand platforms. VMtv is also BBC Worldwide's 50% partner in the UKTV portfolio of ten channels. VMtv is part of Virgin Media, the innovative and pioneering UK entertainment and communications business.