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Nektan PLC (NKTN)

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Wednesday 17 April, 2019

Nektan PLC

Sale of US Division, Equity Raise and CLN Update

RNS Number : 4149W
Nektan PLC
17 April 2019
 

This announcement contains inside information according to REGULATION (EU) No 596/2014 (MAR).

 

 

17 April 2019

NEKTAN PLC

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

 

Sale of US Division, Equity Raise and CLN Update

 

Further to its announcement dated 27 December 2018, the Company announces the completion of the sale of 57.5 per cent of the issued share capital of its US subsidiary Respin to Alternative Investment Partners Limited (AIP), for a consideration of £0.3 million in cash as well as the provision of $0.8 million in working capital to Respin (versus the proposed consideration of £2.0 million cash and £0.3 million in working capital previously announced). The adjustment in purchase price and capital contribution is due to the original proposed purchaser not being able to complete the transaction in the required time period and the new purchaser renegotiating the terms.    

As a result of the sale of the majority stake in Respin, the other inter-conditional transactions, namely the CLN conversion and equity placing and subscriptions, with demand currently at approximately £2.2m (including £0.685m from Gary Shaw, Founder and Executive Officer of the Company) at a placing price of 15 pence per share, both on the same terms as set out in the Company's circular sent to shareholders on 11 January 2019, have been reconfirmed and are expected to complete no later than 30th April 2019.

Following completion of the inter-conditional transactions, the Company confirms that it has sufficient working capital for its present operational requirements. However, as previously announced the Directors remain in discussions with HMRC in relation to an amount owing of approximately £3.6 million for UK point of consumption tax as at end of April 2019, which if not successful, may give rise to a further funding requirement.

Lucy Buckley, Chief Executive Officer of Nektan, said: "We are very excited about this new partnership with AIP who specialise in investing in fast growing technology businesses. The majority sale of our US subsidiary allows Nektan to retain a material stake in the emerging US market without funding it on an ongoing basis. We look forward to continuing to work closely with Respin as we firmly believe in our US mobile casino product. As previously announced, Respin has steadily been gaining traction in the US, signing deals with some of the biggest land-based casinos in the world and we are excited about the macro trends in the market."

"Removal of the cash burn of the US business will allow Nektan to focus on the profitability of its core European business and continue to grow the Company globally. Achieving EBITDA break-even during the first half of FY19 was a key milestone for the Company and reaching full-year EBITDA break-even remains a key focus and is on track."

 

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 (Nominated Adviser and Joint Broker)

Tom Griffiths / David Coaten

+44 20 7601 6100

 

 

Smaller Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate

+44 20 3651 2911

 

 

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 a fast growing, international gaming technology and services provider, specialising in mobile casino. It licenses its proprietary technology to leading operators including BetVictor and provides end-to-end technology and white label casino services for leading brands including News International's, The Sun Play.

 

Nektan's full end-to-end technology platform, Evolve, enables the management of the full customer experience and back-office operations, allowing partners to focus on marketing the product to their consumers.

 

The E-Lite platform is Nektan's B2B gaming content aggregator and bonusing platform that delivers a wide range of premium content from the world's leading game studios. It is an easily-integrated add on module for operators, giving them an array of options and flexibility on how they manage and distribute a breadth of premium gaming content across their networks.

 

Nektan's US JV, Respin, provides US land-based casinos with an in-venue mobile gaming solution. It allows operators to add mobile technology and content to their existing offerings, with products accessible to players across both cabinets and mobile devices inside casinos.

 

Headquartered in Gibraltar, Nektan is regulated by the Gibraltar Licensing Authority, the UK Gambling Commission and the Information Commissioners Office. As a socially responsible license holder, Nektan endeavours to deliver a safe, secure and robust player gaming experience.

 

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

 

 


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