Nektan plc Completion of Inter-Conditional Transactions, Reduction of Debt, Increased Placing and Directors’ Shareholdings

Nektan plc (LON: NKTN), the fast-growing international gaming technology platform and services provider, today announced that all inter-conditional transactions as set out in its circular sent to shareholders dated 11 January 2019 are expected to complete on 29 April 2019, resulting in a combined reduction in debt of 45% and fresh equity investment.

Lucy Buckley, Chief Executive Officer of Nektan, said:

“With the majority of outstanding debt now resolved and our cash burn greatly reduced, Nektan is in an even stronger position to capitalise on our business model, proprietary technology, the increasing portfolio of premium casino games content, our major gaming partners and the growth trajectory we have established globally.”

“Our successful completion of these transactions would not have been achieved without continued support from our existing shareholder base and fresh investment from new shareholders. We are grateful to our shareholders and this completion is a clear endorsement of the progress we have made as demonstrated in our recent trading updates that show continued growth in our core KPIs.”

The transactions include the conversion of £4.870m of the Series A convertible loan notes (“CLNs”), being 60 per cent. of the outstanding £8.125m balance, including £1.908m of the outstanding £2.275m interest (84 per cent.), resulting in the issue of 45,183,786 new ordinary shares in the Company (“New Ordinary Shares”) at the conversion price of 15 pence per share (“Issue Price”); an amendment to the future conversion price and interest rate of the remaining Series A CLNs, to 200 per cent. of the last equity issue price (with a minimum price of 30p and maximum price of 209p) and 2.5% respectively; the conversion of £0.65m worth of debt to equity by Gary Shaw, Executive Director, plus accrued interest of £0.187m, resulting in the issue of 5,583,290 New Ordinary Shares at the Issue Price; and an amendment to the facility agreements entered into in July 2017 by Gary Shaw and Venture Tech Assets Limited (“VTA”) a company that is controlled by Sandeep Reddy, a Non-Executive Director of the Company.

The Company is also pleased to announce that further to its announcement dated 18 April 2019 (“Announcement”), it has placed a further 666,667 New Ordinary Shares with an institutional investor at the Issue Price, raising an additional £0.1m, bringing the total raised from the Placing to £2.2 million (before expenses) for the Company, resulting in the issue of 14,644,687 New Ordinary Shares at the Issue Price. The Company has agreed that settlement be deferred in respect of 1,333,334 New Ordinary Share (“Deferred Settlement Shares”), forming part of the Placing. Settlement of the Deferred Settlement Shares is expected by 30 June 2019.

In relation to the CLN Conversion, Gary Shaw is converting £300,000 principal plus £77,425 accrued interest, resulting in the issue of 2,516,167 New Ordinary Shares, and Jim Wilkinson is converting £250,000 principal plus £77,225 accrued interest, resulting in the issue of 2,181,503 New Ordinary Shares, in each case at the Issue Price. In addition, the Company is issuing 180,000 New Ordinary Shares in lieu of fees and expenses to Jim Wilkinson, and 348,112 New Ordinary Shares to VTA, each at the Issue Price (“Directors’ Transactions”). Gary Shaw, Sandeep Reddy and Jim Wilkinson’s participation in the Directors’ Transactions constitute a related party transaction. Lucy Buckley (the “Independent Director”) considers, having consulted with the Company’s nominated adviser, Stockdale Securities Limited, that the Directors’ Transactions by each of Gary Shaw, Sandeep Reddy and Jim Wilkinson are considered to be fair and reasonable insofar as the Company’s shareholders are concerned.

These transactions result in a stronger balance sheet with a reduction in the total level of debt in the Company from £11.35m to £6.20m.

The inter-conditional transactions are due to complete on admission to trading on AIM of the 64,606,541 New Ordinary Shares (other than the Deferred Settlement Shares) (“Admission”) pursuant to the Placing, the CLN Conversion and the Debt Conversion. Application for Admission has been made, which is expected to become effective, and dealings to commence, at 8.00 a.m. on 29 April 2019.

The 64,606,541 New Ordinary Shares will on admission rank pari passu in all respects with the existing ordinary share capital of the Company. Following Admission, the Company’s enlarged issued share capital will comprise 112,172,414 ordinary shares, with voting rights. The Company does not hold any ordinary shares in treasury, therefore the total number of ordinary shares in the Company with voting rights will be 112,172,414. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Share on facebook
    Facebook
    Share on twitter
    Twitter
    Share on linkedin
    LinkedIn
    Nektan plc

    More articles like this

    Nektan plc

    Woohoo Games Conquers India Market

    A forward-thinking creative gang called Woohoo Games, got a unique opportunity to exhibit its content in one of the most attractive markets, India. This was made official via alignment with 10CRIC, an entertainment venue that hosts a wide

    Nektan plc

    Nektan Gaming Platform Will Drive SoftGaming

    Gilbraltar’s Nektan is helping drive Cyprus’ SoftGamings forward. Under an agreement, the global gaming platform and the white-label casino provider with each get to strengthen their position across Europe, Asia and the US. A world leader like Nektan knows how

    Nektan plc

    Evoplay Entertainment enters UK through Nektan deal

    Game development studio Evoplay Entertainment has launched in the UK for the first time in through an agreement with gaming technology platform and services provider Nektan. The deal sees Evoplay Entertainment bring its hugely popular portfolio to the

    Nektan plc

    Transformed Nektan eyes ‘break even’ comeback

    ‘B2B focused’ Nektan Plc remains confident that it can achieve EBITDA break-even results by the end of year trading. Publishing its corporate results for the six-month period ending 31 December 2019 (H1 2019), Nektan recorded corporate revenues of £800,000, up

    Nektan plc

    What to Look for in a Secure Online Casino

    Online casinos have become quite popular among gamblers because they allow betting on favorite slots conveniently at the comfort of your home. Also, with online casinos, deposits and withdrawals are easy to make since these services accept various

    Nektan plc

    Why Online Casino is Increasingly Becoming Popular?

    Over the past couple of years, more and more people who are into casino games find playing online more convenient. This is one of the reasons why casinos and gambling operators strive to leverage on the advancements in

    Nektan plc

    Upgrade your gaming system

    BENEFITS OF THE E-LITE PLATFORM SEAMLESS INTEGRATION SEAMLESS INTEGRATION Single API integration Quick and easy access to games portfolio and bonus features Caters for high volume businesses PREMIUM GAMING CONTENT 500+ games World leading content providers; Slots, scratch,

    Nektan plc

    The Benefits of Online Gambling

    The benefits one can get from gambling on online platforms are various and manifold. In this article, we highlight some of the advantages that users can expect to get when gambling online. High Returns The gaming titles on casino

    Nektan plc

    8 things you didn’t know about online casino

    Online Casino Can Be Legal or Illegal State laws differ significantly. While some states in the world prohibit online gambling like mobile gambling, mobile casino games, and such, other countries did not explicitly ban them. In the USA,

    Nektan plc

    Nektan double revenues in latest trading update

    Nektan (LON:NKTN), the fast growing, award-winning international gaming technology platform and services provider, today announced a trading update for the six months ended 31 December 2019.  Following the Group’s restructuring, as announced on 7 January 2020, the Company

    Nektan plc

    Staying Safe When Playing Online Casino Games

    Millions of people now play casino games online. It’s an industry that has grown massively over the past few years. Sadly, this does also mean that more and more of us are in danger of falling foul of online

    Nektan plc

    Nektan completes sale of B2C subsidiary for cash

    In a move that was highly anticipated, Nektan announced that they have completed the sale of their U.K. B2C business, selling it to Grace Media. The sale was for a total of £200,000 ($262,969) and is part of an overall

    Nektan plc

    How to play casino with a mobile app

    If we could use only one word to sum up the seismic changes that have taken place in the online gambling industry over the past ten years, it’s mobility! Massive advances in technological innovation have revolutionised traditional casinos

    No more posts to show