22 Dec 2009 07:00
| Date: | 22 December 2009 |
| On behalf of: | NetPlay TV plc ('the Company' or 'NetPlay') |
| Embargoed for: | 0700hrs |
NetPlay TV plc
Completion of the Abstract Games and Info-Download acquisitions
NetPlay TV plc (AIM: NPT), the interactive TV gaming company, announces the completion of the Abstract Games Ltd acquisition, originally announced 26 February 2007, and the Info-Download acquisition, originally announced on 2 January 2009.
Abstract Games
NetPlay TV has agreed a final payment to the vendors, Ronald Hatchett, Steven Breeds and Adam Yendle (the "Vendors"), and the sale of Abstract Games back to them following the Company's decision to divest itself of its premium rate telephony business as previously announced.
Abstract Games was purchased for initial consideration of £500,000, paid when the business was acquired, the terms of the deal allowed for a further deferred consideration, capped at £3.5m. In addition to the first tranche of deferred consideration paid in 2008 which amounted to £1,012,046, the Board has agreed a final payment with the vendors of £1,100,000 which will be paid immediately in full as final settlement of the purchase agreement, bringing the total consideration to £2,612,046.
NetPlay TV will retain the recurring revenues from the subscription services operated by Abstract Games since they joined the group. Abstract Games is being sold back to the Vendors for consideration of £1. On disposal the company's net assets were £2,289.
Info-Download
On 2 January 2009 the Company announced the purchase of quiz and mobile casino services from Info-Download Limited for an initial consideration of £750,000, which was satisfied by the issuance of 2,884,615 shares and deferred consideration of £250,000. The deferred consideration will be satisfied by the issue of 961,538 new ordinary shares, to be issued at a pre-agreed price of 26p.
The deferred consideration shares will be issued today and are expected to be admitted to trading on AIM from 29 December 2009. The shares are subject to a 12 month hard lock-in from completion date and then an orderly market agreement thereafter.
The mobile quiz revenues have remained constant since acquisition, whilst the mobile casino revenues have shown exceptional growth. Total bets placed through the mobile casino platform were £0.9m for the month of November and continue to grow on a month by month basis.
As part of the settlement, Netplay TV will cease paying Zed Worldwide £10,000 per month for global distribution of its products, as a consequence of the Company focusing its expansion in regulated markets. In addition, Zed Worldwide has agreed to assist the Company through its mobile network relationships in regulated markets. Furthermore, as a consequence of entering into the five year strategic deal with Playtech the Company no longer has a requirement for Zed worldwide to develop mobile side games. Through its agreement with Playtech the Company is now able to offer in excess of 10 mobile side games with jackpots exceeding £200,000.
-Ends-
Enquiries:
| NetPlay TV plc | |
| Martin Higginson, Executive Chairman | www.netplaytv.plc.uk |
| Via Redleaf | |
| Redleaf Communications | Tel: 020 7566 6700 |
| Emma Kane / Mike Ward / Wendy Watherston | netplay@redleafpr.com |
| Panmure Gordon | Tel: 020 7459 3600 |
| Dominic Morley | |
| 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.