Shares of Mobile gaming provider Nektan rise as it sells gaming brands
The company is selling its Chomp Casino, Spin Princess and Sapphire Rooms brands for an initial £1.75mln, plus a further £200,000 expected shortly
Shares in mobile gaming provider Nektan PLC (LON:NKTN) jumped on Monday after the company told investors it had sold three of its gaming brands to Buckingham HMB.
Buckingham is paying an initial £1.75mln in cash, plus a further £200,000 which is expected shortly, for Nektan’s Chomp Casino, Spin Princess and Sapphire Rooms brands.
The three brands will continue to operate under Nektan’s white label Evolve platform as part of a five-year licensing agreement, for which Buckingham will pay a monthly royalty.
“The transfer of these brand assets coupled with the long term white label licensing agreement is a positive step forward for the business by providing additional working capital,” said chief executive Leigh Nissim.
Nektan said the cash generated from the sale would be used to develop the firm’s businesses both in Europe and at its US joint venture, Repsin Inc.
The three brands sold generated net gaming revenue of around £2mln in its latest financial year.
Shares were up 7%, or 2.9p, to 45.4p.
Source: proactiveinvestors
