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Nektan PLC (NKTN)

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Friday 08 February, 2019

Nektan PLC

Company Update

RNS Number : 5433P
Nektan PLC
08 February 2019
 

8 February 2019

NEKTAN PLC

("Nektan", the "Company" or the "Group")

 

Company Update

Further to its announcement released earlier today that all resolutions were passed at its AGM which would allow all inter-conditional transactions detailed in its circular to shareholders, dated 11 January 2019 ("Circular"), and announcement of 14 January 2019, Nektan plc (AIM: NKTN) provides the following update.

Summary

The Company announces that it has received more support for the placing and subscription than previously announced, with demand currently at £2.2 million. However, there is a short delay in executing all transactions described in the Circular due to further due diligence being undertaken on the proposed sale of the majority shareholding of Respin.

Respin

Although the proposed sale of the majority shareholding of Respin is progressing, the buyer's due diligence processes, the completion of which would allow it to enter into a binding contract with the Company, remain ongoing. The Company expects to enter into a binding contract for the sale as soon as possible, but in any event no later than 30 April 2019. This coincides with the expiration of the authority provided by shareholders at the Company's AGM for the issue by the Company of new shares at 15 pence per share by way of a placing and subscription to raise up to £3.5 million.

Placing and Subscription

The Company has entered into Subscription Agreements to date under which subscribers will invest a total of £2.2 million into the Company. This is significantly above the minimum of £1.5 million set out in the Circular. In addition, the Company has also received further expressions of interest which may increase the funds raised pursuant to the placing and subscription prior to 30 April 2019. Once the date of the Respin transaction is confirmed the Subscription Agreements will be updated.

Debt Conversion and Facility Agreements

The position as set out in the Circular remains unchanged, although given the inter-conditionality of all the transactions set out in the Circular the Debt Conversion will complete simultaneously with those other transactions.

CLN Conversion and Series A Amendment

The position as set out in the Circular remains unchanged. However, the dates set out in the Amendment Deed will need to be updated and the noteholder resolutions re-circulated. Agreed conversions will also be reconfirmed in due course.

Inter-conditionality

All of the above transactions remain inter-conditional, notwithstanding that all resolutions of the Board and the Company at the AGM have been passed to approve and effect them. However, upon a contractual commitment being entered into for the proposed sale of the majority shareholding of Respin, all transactions will complete simultaneously.

Current Working Capital sufficient

Other than as described above, the position as set out in the Circular regarding the use of funds, working capital and dialogue with HMRC remains unchanged. As previously announced, the Company also remains on track to be EBITDA break-even in its European operations by the end of FY19 (30 June 2019). The Company confirms that it has sufficient working capital for its present requirements.

 

A further announcement will be made in due course.

 

For further information on the Group, please contact:

Nektan

Lucy Buckley, Chief Executive Officer

Gary Shaw, Executive Officer 

 

+44 20 3463 8735

 

 

Stockdale Securities Limited

Tom Griffiths / David Coaten

+44 20 7601 6100

 

Nominis Advisory (PR Adviser)

Angus Campbell

 

+44 7 881 625 098

Email: [email protected]

 

Further information on Nektan can be found on the Group's website at www.nektan.com

 

About Nektan:

Nektan is an international B2B and white label gaming software and services provider, operating in the regulated, interactive real money gaming (RMG) 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.

Nektan's US operating subsidiary, provides US land-based casinos with in-venue mobile gaming solutions which allow operators to add mobile technology and content to their existing offerings, with products accessible to players 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.

Nektan is headquartered in Gibraltar, regulated by the Gibraltar Licensing Authority and the UK Gambling Commission, as well as in the Irish market and maintains sales and customer support operations in Europe and North America. The proprietary Evolve technology is developed and maintained by a talented and experienced team of employees from Nektan's Indian office.

Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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