Nektan sells three gaming brands to Buckingham

22nd Aug 2016 11:41

(ShareCast News) - AIM-listed mobile gaming provider Nektan has agreed to sell three of its wholly-owned gaming brands to Buckingham for an initial £1.75m in cash, with a further £200,000 expected to follow shortly.The company will also enter into a five-year licensing agreement with the group for the continuing operation of the brands under Nektan's white label Evolve platform for a monthly royalty.The assets being transferred are the Chomp Casino, Spin Princess and Sapphire Rooms brands. In the year to the end of June 2016, the brands generated net gaming revenue of about £2m. Nektan said the proceeds will be used for the group's' working capital requirements to further develop its business in Europe and its US Joint Venture, Respin Inc.Chief executive Leigh Nissim said: "Since formally joining the company on 25 July, we have begun to refine our structure to bring tighter focus and to optimise our businesses in Europe and the US."As part of this process, 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 for the Group while still benefiting from a share of the ongoing revenues of the brands." At 1145 BST, Nektan shares were up 5.9% to 45p.