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Mobile Gaming Provider Nektan Closes Sale of US Division
Tuesday 23 April 2019

23 April 2019 - Gibraltar-based mobile gaming provider Nektan plc (AIM: NKTN) has closed the sale of 57.5% of the issued share capital of its US subsidiary Respin to Alternative Investment Partners Ltd., for a consideration of GBP 0.3m in cash as well as the provision of USD 0.8m in working capital to Respin (versus the proposed consideration of GBP 2m cash and GBP 0.3m in working capital previously announced), the group said.

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 GBP 2.2m (including GBP 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 GBP 3.6m for UK point of consumption tax as at end of April 2019, which if not successful, may give rise to a further funding requirement.
 
Nektan is a 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 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.

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.
Details
Date Published: 23/04/2019
Target: Respin/57.5%
Country: USA
Deal Size: 1.43m (USD)
Sector: Hotels/Restaurants/Casinos/Catering
Type: Divestment
Financing: Cash
Status: Closed
Vendor: Nektan,  
Buyer: Alternative Investment Partners
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