Business
Acquisition
Acquisition.
About this update from Catalyst Media Group Plc
[{"type":"text","content":"\n Catalyst Media Group PLC\n25 August 2006\n\n\n25 August 2006\n\nCatalyst Media Group plc\n\n Acquisition\n\nCatalyst Media Group plc ('CMG' or the 'Company') announces that further to the\nannouncement on 29 June 2006 it has today completed the acquisition of the\nbalance of the total issued share capital of Spoof.com Ltd ('Spoof'). Spoof has\ndeveloped an on-line head-to-head version of the traditional spoof pub game.\nThis will be a key constituent of a new on-line gaming platform to be launched\nby CMG, complete with a suite of fixed odds and exclusive head-to-head games.\nThe platform will enable gamers to play head-to-head for cash or prize based\ngames across mobile phone, PC and TV platforms.\n\nPaul Duffen, CEO of CMG commented 'The head-to-head gaming sector is an under\nexploited and potentially lucrative market with exciting growth prospects. The\nacquisition of Spoof fits perfectly with our recently announced partnership with\nYooMedia plc, bringing together their leading interactive technology and our\nexpertise in marketing and distribution to portals, ISP's and on-line\ncommunities. As a result, the total incremental cost to CMG of running the\non-line gaming platform will be less than £100,000 per annum. This initiative\ncombines our experience in the distribution of on-line content, with our focus\non the gaming and betting industry as reflected in our acquisition of a 22.16%\nstake in SIS in September 2005.'\n\nCMG acquired 9.09% of Spoof.com Ltd in November 2005 for a cash consideration of\n£25,000. Further to the announcement made on 29 June 2006, the consideration for\nthe acquisition of the remaining 90.91% has changed to comprise a total of\n55,556,107 new ordinary shares at 1p each in CMG ('CMG consideration shares'),\n25,252,776 of which will be issued and allotted at completion, with the balance\nof up to 30,303,331 to be issued on satisfaction of certain performance targets\nover a three year period from the date of launch, expected to be in the first\nquarter of 2007.\n\nAll shareholders who currently own more than 10 per cent of the issued share\ncapital of Spoof have entered into lock-in arrangements, pursuant to which they\nmust retain 50 per cent of the CMG consideration shares issued to them for a\nperiod of six months following allotment. They will receive 9,828,377 of the CMG\nconsideratio...