Stride Gaming PLC 8ball & InfiApps: agreed Earnout & Issue of Equity (9639Q)

TIDMSTR

RNS Number : 9639Q

Stride Gaming PLC

18 September 2017

18 September 2017

Stride Gaming plc

("Stride Gaming", the "Company", or "the Group")

8ball and InfiApps - agreed Earnout and Issue of Equity

Stride Gaming plc (AIM: STR), a leading online gaming operator, is pleased to announce that it has today agreed the final earn-out consideration payable in respect of its August 2016 acquisition of 8ball Games Limited ("8ball").

The 8ball's financial performance has been in line with the Board's expectations, achieving an unaudited Adjusted EBITDA of GBP4.18m for the period to 31 August 2017.

The agreed final earnout consideration is GBP13,092,000 (the "Earnout Payment"). The Earnout Payment will be split as previously agreed, with GBP9,055,200 satisfied by the issue of 4,117,482 new ordinary shares of 0.01p each ("Earnout Shares") and GBP4,036,800 payable in cash.

As set out in the circular to shareholders dated 3 August 2016, the Earnout Payment is based on a multiple of 6 times 8ball's Adjusted EBITDA for the 12 month period following completion, less the initial consideration which will be settled in a mix of cash and Earnout Shares. Of the Earnout Payment, the first GBP3,000,000 is satisfied by the issue of 1,333,333 Earnout Shares calculated by reference to the August 2016 placing price of 225 pence. The remaining consideration is split 40% in cash and 60% in shares; being 2,784,149 Earnout Shares calculated as the first GBP1,000,000 to be satisfied at 225p being the placing price of the August 2016 placing and the reminder by reference to the average closing price of the Ordinary Shares for the 90 day period ending on 31 August 2017.

The Earnout Shares are subject to a lock-in arrangement, under which the Company must agree to any sale of these shares for a period of 12 months from date of issue.

An application will be made shortly for the 4,117,482 Earnout Shares to be admitted to trading on AIM, with admission expected to take place on 30 September 2017 ("Admission"). Following Admission, the Company's issued share capital will consist of 72,077,600 Ordinary Shares.

In addition, the Company is pleased to announce that the final earnout consideration payable in respect of its acquisition of the social gaming operation, InfiApps Limited, in August 2015, has been agreed at $1,200,000 and satisfied in cash.

Eitan Boyd, Chief Executive of Stride Gaming, commented:

"We are delighted with the performance of 8ball over the period. Its integration into the wider group has begun successfully and we are already seeing synergies materialise.

"Having based the consideration around EBITDA performance we have been able to effectively ensure alignment of incentives. 8ball's performance since acquisition has clearly demonstrated our capability to acquire and integrate quality businesses, in line with the Group's growth strategy."

Enquiries:

 
 Stride Gaming plc 
  Nigel Payne (Non-Executive Chairman) 
  Eitan Boyd (Chief Executive Officer)      +44 (0) 
  Ronen Kannor (Chief Financial Officer)     20 7284 
  www.stridegaming.com                       6080 
 Shore Capital (Nominated Adviser 
  and Joint Broker)                         +44 (0) 
  Mark Percy                                 20 7408 
  Toby Gibbs                                 4090 
 Canaccord Genuity Limited (Joint 
  Broker) 
  Bruce Garrow                              +44 (0) 
  Emma Gabriel                               20 7523 
  Richard Andrews                            8000 
 Yellow Jersey PR 
  Felicity Winkles                          +44 (0) 
  Georgia Colkin                             776 932 
  Joe Burgess                                5254 
 

About Stride Gaming plc:

Stride Gaming plc, listed on AIM, is a leading online gaming operator. The Company operates a multi-branded strategy, using a combination of its proprietary and licensed software to provide online bingo and slot gaming and a social gaming mobile application.

Stride Gaming's real money offering is presently focused on the UK market, where it is licensed and only operates from the regulated jurisdictions of the UK and Alderney. The Company has an international reach in the mobile social gaming market with a focus on North America. With a diverse portfolio of 126 brands, Stride Gaming is the fourth largest online bingo operator in the UK, and has over 25% share of the UK online bingo landscape.

Stride operates a B2B platform, Stride Together, through which the company licences its proprietary platform to gaming operators, media partners and retailers in the UK and globally, enabling them to create an online presence for their customers and enabling Stride to penetrate new and non-bingo verticals both within UK markets and overseas territories.

Further information on the Group is available at: www.stridegaming.com

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 18, 2017 02:01 ET (06:01 GMT)