22 Dec 2010 12:18
THE WEATHER LOTTERY PLC
Ticker: TWL
("The Weather Lottery", "TWL" or the "Company")
TWL announces the acquisition of Devil Fish Poker Ltd
TWL continues its strategy of creating a Gaming Division to compliment its well-established Lottery Management business with the purchase of on-line poker company Devil Fish Poker Limited ("DFP")
Dated: 22 December 2010
The Weather Lottery, the AIM quoted online gaming and lottery management specialist, is pleased to announce that on 21 December 2010 it entered into a conditional agreement to acquire the issued share capital of Devil Fish Poker Limited ("DFP") for a total consideration of £330,000, to be satisfied by a cash payment of £40,000 with the balance of £290,000 being satisfied by the issue of up to 30,000,000 new ordinary shares of 0.1p each ("Acquisition Shares"). The acquisition of DFP is conditional only upon the admission of the Acquisition Shares to trading on the AIM Market of London Stock Exchange plc ("Admission"). The actual number of Acquisition Shares will be dependent on the average of the closing mid-market prices of the Company's ordinary shares on the three days prior to Admission.
An application will be made for the Acquisition Shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM with effect from 30 December 2010.
Highlights
TWL adds the recognised Devil Fish Poker brand to existing development of its FCBetz.com sports betting brand and its existing Weather Lottery and new FC Lotto brands.
The DFP acquisition is a further testament to the strategy to reinvigorate TWL as announced by the Board in Summer 2010.
The Board believes this represents a significant and exciting opportunity for TWL to bring together its gaming interests trading under the FCBetz.com brand as announced on July 2010 and which is marketed through football clubs and recently Bauer Radio Media and now the DFP brand.
Future development of the gaming operations
The Board believes that the Devil Fish Poker brand is known and recognized nationally and internationally especially in Europe. TWL can benefit from what it considers the undeveloped potential to promote and exploit the brand. It will target from within not only the existing active players but also the potential amongst the many thousands of names registered on the DFP data base. In addition there is the clear opportunity of significant cross selling of FCBetz.com products and the Devil Fish Poker brand into each other's respective databases. The Board believes that this, coupled with a reduction in overhead of DFP by consolidating its marketing through TWL`s existing channels, will bring long term financial benefits and accelerate the Board's strategy to become a significant operator in the online gambling sector.
Development of On-Line Poker
The Board believes that there is potential for significant international growth based on the existing awareness of the Devil Fish Poker name and brand. Whilst the sector has experienced some leveling off, the possibility of further expansion into Asia and, if legislation should allow, into the United States gives this already established brand a new and exciting impetus.
Future strategy
The Board's paramount considerations continue to be firstly to provide increased shareholder value and secondly to do so within a programme of acquisitions and organic growth which provide a basis of solid income earning assets, giving TWL the ability to develop longer term higher yielding new business particularly in the gaming sector. To this end the continued growth of the core lottery business is to be maintained and other income earning opportunities are continually being considered.
Information on DFP
DFP is a 100% subsidiary of Devilfish Gaming Plc ("DEVP") which is traded on PLUS-Quoted, an unlisted securities Exchange Regulated Market operated in London by PLUS Markets plc, a recognised investment exchange and a Market Operator under the Markets in Financial Instruments Directive (MiFID). In its year ended 30 June 2010, DFP made an operating loss of £106,331 on a turnover of £783,353. As at that date, it had net liabilities of £10,802.
TWL Chairman Lord Razzall CBE commented:
"Devil Fish Poker has an established brand name in a sector which is complimentary to the existing gaming operations of TWL. We have a growing database of users in both FCBetz.com and FC Lotto some of whom will we believe wish to take advantage of the DFP products. The Board considers its acquisition at a time when there is still considerable untapped potential for development fits in with our gaming strategy".
ENDS
For further information contact:
The Weather Lottery PLC
Ross White 01777 818036
Website www.theweatherlottery.com
Religare Capital Markets (Nomad) 020 7444 0800
Nick Harriss
SVS Securities (Broker) 020 7638 5600
Ian Callaway/Alex Mattey