Velox3 acquires Sheltyco, proposes name change

9th Jun 2016 14:24

(ShareCast News) - Investing company Velox3 announced on Thursday its conditional acquisition of the entire issued share capital of Sheltyco Enterprises Group for £10.9m, to be satisfied by the issue of 43,753,775 new consolidated ordinary shares.The AIM-traded firm said Sheltyco is a holding company for several subsidiary companies focused on the marketing and promotion of third party online gaming, lottery adn bnary option operators, such as Betsafe, Lottopalace and Option888.Velox3's board said Sheltyco has been profitable and cash generative since 2013.The company currently has 193,031,360 existing ordinary shares in issue, and plans to consolidate shares at a ratio of 25 existing shares for each new share.The company also announced that it has conditionally raised £538,000 before expenses by way of a subscription of 2,152,172 subscription shares at a price of 25p each."Following admission, the enlarged group will also review potential acquisition opportunities which fit into the company's profile," Velox3's board said in a statement."The net proceeds of the transaction will be used to support the working capital needs of the enlarged group and to continue Sheltyco's marketing activities in gaming, lottery and binary options."Finally, Velox3's directors proposed a change of name to Veltyco Group "to reflect the changing nature of the business".