London AIM-listed mobile gaming services provider Nektan Plc has offloaded its US-specific mobile casino property ‘Respin’ to private enterprise Alternative Investment Partners, completing a £300,000 cash transaction.
Updating the market, Nektan leadership details that it has sold its 57% equity in the US brand, at a lower price than originally anticipated, stating that the firm wishes to halt its ‘stateside cash-burn’.
Nektan had previously priced its Respin asset at £2 million cash consideration, with a further £300,000 working capital attachment. However, today’s confirmed transaction sees Nektan leadership settle for a £300,000 cash deal, with Alternative Investment Partners committing to £800,000 in working capital provisions.
In its update, Nektan stated that it had settled for a lower transaction 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”.
In a statement, Nektan CEO Lucy Buckley, 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 ongosing 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.”