Business
Acquisition and Placing
Acquisition and Placing.
About this update from Gaming Realms Plc
[{"type":"text","content":"\n \nRNS Number : 2192V Gaming Realms PLC 11 December 2013 \n \n\nGaming Realms Plc\n \n(the \"Company\" or the \"Group\")\n \n \nAcquisition and Placing\n \n \nGaming Realms, the creator and developer of interactive next generation online gaming products, announces the acquisition of specialist marketing agency Quick Think Media Ltd (\"QTM\") for a total consideration of approximately £2.2 million (the \"Acquisition\"). In addition, the Group also announces that is has conditionally raised approximately £2.4 million through the proposed placing of 11,476,190 new ordinary shares at 21 pence per share (\"Placing Shares\") with new and existing shareholders (the \"Placing\"). \n \n \nThe Acquisition \n \nQTM is a specialist online gaming marketing agency, with particular expertise in online bingo and casino products. The acquisition of QTM supports the Group's strategy to establish itself within the bingo and casino segment of the social gaming market, as well as launch real money bingo and casino games in the UK regulated market. Over the longer term the Company intends to either acquire or develop and launch freemium and real money social and gambling games across multiple platforms. \n \nQTM will enhance Gaming Realms's activities by cost-effectively capturing new users across emerging digital channels including Facebook, as well as cross promoting players to its own databases and vice versa. QTM trades profitably and will bring a significant revenue stream to the business. In the year ended September 2013 it made profit before taxation of £228,000 (2012: £193,000) and has gross assets of £119,000.\n \nThe aggregate consideration in respect of the Acquisition is £2,220,850 comprising £1,470,850 in cash and a deferred payment of 3,571,428 new ordinary shares (\"Consideration Shares\") being the equivalent of approximately £750,000 at a price of 21 pence per share to be allotted and admitted to trading 12 months from completion. QTM has given certain customary warranties to Gaming Realms which last for 18 months from completion and are limited to a maximum aggregate liability of the aggregate consideration.\n \nQTM was founded by Tom Gooding, Simon Smiley and David Hampstead (the \"Vendors\"). The Vendors were founders of Bejig, the social casino business sold to G...