Business
Disposal of Legacy Third Party Platform Websites
Disposal of Legacy Third Party Platform Websites.
About this update from Gaming Realms Plc
[{"type":"text","content":"\n \nRNS Number : 2531P Gaming Realms PLC 16 February 2016 \n\nGaming Realms Plc\n \n(\"Gaming Realms\", the \"Company\" or the \"Group\")\n \n \nDisposal of Legacy Third Party Platform Driven Websites \n \n \nGaming Realms, the creator and publisher of mobile real money and social games, today announces that it has conditionally sold its third party platform driven website properties, for a total consideration of £2.9 million to Silverspin Media Ltd (\"Silverspin\") and Blackspark Limited (\"Black Spark\") (\"the Buyers\").\n \nBlack Spark will pay the Company, upon completion, an up-front cash payment of £1.2 million and an additional £500,000 payable under a transitional services agreement over the next 5 months. \n \nThe remaining £1.2 million of the total consideration, payable by Silverspin, will be netted off against the final earn out payments to the selling shareholders (\"Blueburra Vendors\") of Blueburra Holdings Limited (\"Blueburra\"). This is due as part of the three year earn out and is being settled at a reduced rate by the Company. \n \nCompletion is expected to occur around the end of February 2016 and is subject to the novation of contracts and approval from the necessary regulators. The Group is retaining the profitable Bingoport affiliate marketing business which was part of the Blueburra acquisition. \n \nDuring 2015, Gaming Realms realigned its strategy to focus on its sites operating on the \"Grizzly\" proprietary platform, as well as creating and publishing innovative mobile content for real money and social gaming. The Group's differentiated mobile offering on Grizzly which includes Slingo games, has led to significant revenue growth, as reflected in the Company's updated trading statement announced on 27th January 2016. The Company has decided to continue to build on this success, and focus investment in new games given the significantly superior marketing returns generated on the Grizzly platform. As a result, the Group has agreed to divest of the third party platform driven website properties. \n \nThe Group intends to use the proceeds from the disposals for the development of new gaming content and marketing campaigns. \n \nSummary of the disposals\n \nThe Company has entered into an agreement ...