London AIM listed gaming operator Gaming Realms Plc has confirmed that it has sold its third party operated website properties to Silverspin Media and Blackspark Ltd for a total sum of £2.9 million.
Gaming Realms is set to receive a cash payment of £1.2 million from Blackspark Ltd, with a further £500,000 attached to deal for transitional services agreed for a period of five months.
Additional buyer Silverspin Media will pay a total consideration of £1.2 million, which will be offset against earn-out payments attached to Gaming Realms’ previous assets owners’ terms.
The company has therefore agreed with the vendors that it will pay a final consideration payment due to be settled by the issue of GBP £1.2 million through the issue of 4.8 million shares at a price of 25 pence on completion.
The website assets sold to Silverspin are reported to have generated Gaming Realms combined losses of £430,000 (15-month period ending December 2014). Gaming Realms governance detailed that it expects to close the sale by the end of February.
The operator will retain profitable online bingo media portal Bingoport.com, and further stated that the proceeds from the business would be used to develop new games content and bolster its existing marketing campaigns
Chief Executive Officer Patrick Southon commented on the sale
“Focusing on higher margin investment in our new mobile platform and achieving significant success within our own mobile content development is delivering stronger returns for Gaming Realms. Having end-to-end control of our offering has created a set of exciting opportunities in the UK, and more recently in the US, and these have become our strategic priority,”