|Well what do you know, are Mark and Rob about to do a Houdini act?..........GL S
RNS Number : 5297P
02 October 2013
For immediate release 2 October 2013
('Zattikka' or the 'Company')
The Joint Administrators of Zattikka plc confirm that their proposals for the conduct of the administration have now been sent to all known creditors. The Joint Administrators are currently exploring the possibility of an exit from administration via a Company Voluntary Arrangement (CVA). In the event that this is not possible, administration will be exited via a Creditors' Voluntary Liquidation (CVL). Further announcements will be made by the Company as and when appropriate.
The Company also confirms the resignation of five of its directors on the following dates:
Richard Adam on 9 August 2013
Anil Hansjee on 9 August 2013
Greg Bestick on 8 August 2013
Harald Ludwig on 8 August 2013
Andrew Kanter on 8 August 2013
Mark Opzoomer and Rob Gorle remain as directors|
|How they have got away with this beggars belief, for me the founders should be paying II's & PI's with some of the multi millions they received during IPO. Its only the FSA who can impose fines etc.|
|duxy786 - Yes the email has been sent over to the administrator and I also spoke to them yesterday, there is an initial update due to be issued by the administrator at some point in the days ahead, I will forward it on as and when it arrives.......GL S|
|Swizz. Tatally agree. Have you sent this already? Could you PM me a copy? Or email it to duxy786 at hot mail dot com. Thanks|
|duxy786_2 - It is a shocker and to see ex non exec directors at the front line of the fire sale beggars belief, I am in the process of putting together an overview of events and it will be heading of to the administrators and the FCA in the next 24 hours, I will keep you posted if I get any response...........GL S|
|Have to agree. Looks like a disgrace in what must be in a record time too.
It would be interesting to know the value of the assets and who, if anyone is benefiting and by how much. Seen these types of situations so many times - assets sold off for a song and shareholders left out in the cold.|
|Swizz...its a pure scam and I have reported it to the FSA. Would love if more people wrote to them for a full investigation.The directors have taken back their companies and left investors high and dry all in 14 months. Its a complete sham. Cant believe their publishing the RNS's with 'who's taking what' on their way out! Absolutely disgusting...i am appalled!Duxy786|
|14 months is that a new record..|
|Jeeez, what a scam....and they got away with it ..lol|
|No huge surprises in amongst this lot, what a fiasco!........GL S
RNS Number : 9683K
05 August 2013
For immediate release 5 August 2013
('Zattikka' or the 'Company')
Update re: insolvency proceedings, appointment of administrator and sale of assets
Further to the announcements made on 22 July, 29 July and 1 August 2013, Zattikka is announcing today a series of events and transactions.
The Company has agreed to sell Sneaky Games, Inc. (SGI) to Seal Gaming LLC, a group led by David Godwin and David Jarvie, two previous shareholders in SGI. The transaction is expected to complete by 15:00 BST today.
The assets sold subject of the transaction include 100 per cent. of the shares held by Zattikka in SGI, all games operated by SGI including the recently launched Arena of Heroes (AoH), and a license to use and adopt SNAP source code for internal purposes, with no continuing obligations on Zattikka. For the year ended 31 December 2012 (pro-forma unaudited), SGI recorded revenue bookings of $0.5m and attributable adjusted EBITDA loss of $0.8m. For the six months ended 30 June 2013 (unaudited), the Directors of Zattikka expect SGI to have recorded revenue bookings of $0.1m and attributable adjusted EBITDA loss of $1.1m. While AoH is a promising new game franchise, it will require a further period of development, marketing and adaptation to achieve success, which Zattikka can no longer finance.
The consideration received is the surrender and cancellation of $1.2m of loan notes and accrued interest payable by Zattikka and issued to the previous vendors of SGI in April 2012. These proceeds will reduce the indebtedness of the Company. The transaction will also include the return via blank stock transfer forms of 1.6m of ordinary shares in Zattikka held by the previous vendors of SGI , representing approximately 7.3% of the outstanding shares of Zattikka. Any transfer of these shares will be determined by the administrator.
Intention to appoint Administrator
The Company announces its intention to appoint David Dunckley and Ian Corfield of Grant Thornton as joint administrators (the "Administrators") to complete the restructuring of the Company. This appointment is expected to be approved by 16.30 BST today.
Immediate Next Steps
The Company is in advanced negotiation for the sale of Concept Art House Inc. and certain assets of Hattrick Europe Limited which are expected to close later today. As part of that process, the Board will first appoint the Administrators to the Company and its subsidiary, Hattrick Europe Limited, and shortly thereafter it is anticipated the Administrators will complete the sales referred to above. Both transactions are expected to close by 17:00 BST today.
Concept Art House, Inc.
The Administrators anticipate that by 17:00 BST today the Company will have completed the sale of Concept Art House, Inc. (CAH) to CAH Holdings Group, Inc., a group led by James Zhang and Matthew Le Merle, two previous shareholders in CAH. This disposal does not require the approval of shareholders pursuant to the AIM rules, as the disposal has arisen due to insolvency.
Certain of the holders of the CAH vendor loan notes, including James Zhang, a substantial shareholder of Zattikka, are related parties to Zattikka, for the purposes of Rule 13 of the AIM Rules for Companies. The directors of Zattikka consider, having consulted with Canaccord Genuity Limited, that the terms of the agreement to dispose of CAH are fair and reasonable insofar as Zattikka shareholders are concerned.
The assets sold subject to the transaction include 100 per cent. of the shares held by Zattikka in CAH, all games operated by the Zattikka AppStore to the extent transferable (excluding Hattrick) and CAH's Shanghai based subsidiary, Yi Yi Ju (Shanghai) Software Technology Co Limited. Specifically this does include the recently launched Legacy of a Thousand Suns game (LoTS) and also includes a license to use and adopt SNAP source code for internal purposes, with no continuing obligations on Zattikka. For the year ended 31 December 2012 (proforma unaudited), CAH recorded revenue bookings of $4.2m and attributable adjusted EBITDA of $0.1m. For the six months ended 30 June 2013 (unaudited), the Directors of Zattikka expect CAH to have recorded revenue bookings of $2.2m and attributable adjusted EBITDA of $0.1m. The core art service business continues to grow but with increasing pressure on margins. While LoTS is a promising derivative of the Facebook game operated by 5(th) Planet Games, it will also require a further period of development, marketing and adaptation to achieve success, which CAH and Zattikka can no longer finance.
The company has $2.4m of vendor loan notes payable to the previous vendors of CAH, which in the Directors' opinion the Company will unlikely to able to refinance when they become due. The consideration received is the surrender and cancellation of at least 97% ($2.5m) of the loan notes and accrued interest payable by Zattikka and issued to the previous vendors of CAH in April 2012, and $0.4m of cash. These proceeds will be available to reduce the indebtedness of the Company. The transaction will also include the return via blank stock transfer forms of at least 97% (4.3m) of the ordinary shares in Zattikka held by the previous vendors CAH, representing approximately 19.2% of the outstanding shares of Zattikka. These shares may be transferred to any person other than a director of the Company or anyone acting in concert (as defined in the City Code on Takeovers and Mergers) with a director or any connected person of a director. Any transfer of these shares will be determined by the administrator.
Hattrick Europe Limited ("HEL")
The Administrator is further anticipating that by 17:00 BST today the Company, HEL and Hattrick Holdings Ltd (a Gibraltar subsidiary of the Company) will have completed the sale of certain key assets in respect of the Hattrick and Popmundo games (HEL) to Hattrick Limited, a group led by Mattias Soderhielm and Johan Gustafsson, two previous leading shareholders in Hattrick Holdings Limited (Vendors) which sold these assets to the Company in April 2012. This disposal does not require the approval of shareholders pursuant to the AIM rules as the disposal has arisen due to insolvency.
The assets sold subject of the transaction include HEL's intellectual property rights, certain server equipment and various key contracts. For the year ended 31 December 2012 (proforma unaudited), HEL recorded revenue bookings of $5.5m and attributable adjusted EBITDA of $1.4m. For the six months ended 30 June 2013 (unaudited), the Directors of Zattikka expect HEL to have recorded revenue bookings of $2.8m and attributable adjusted EBITDA of $0.9m. Despite a promising Q1, new global pricing structure, and tutorial improvement being rolled out in Q3, the core Hattrick game has continued to perform weaker than anticipated by the Directors in regard to new subscriber growth later in Q2 and the outlook for H2 now looks unachievable. In addition, the Vendors had an interest payment due in June on the vendor loan note amendment which, in view of the trading weakness and reduced cash flow the Company cannot make.
The consideration received is the surrender and cancellation of all of the EUR6.4m loan notes issued to the previous vendors of HEL in April 2012 and all related accrued interest payable by Zattikka (including accrued interest already demanded by the noteholders) and Euros 1.2m of cash. These proceeds will be used first to repay Barclays Bank plc who have security over the HEL shares and assets and thereafter reduce the general indebtedness of the Company. The transaction will also include the return via blank stock transfer forms of 1.65m ordinary shares in Zattikka, representing approximately 7.4% of the outstanding shares of Zattikka. These shares may be transferred to any person other than a director of the Company or anyone acting in concert (as defined in the City Code on Takeovers and Mergers) with a director or any connected person of a director. Any transfer of these shares will be determined by the administrator.
The result of these transactions will be to reduce the indebtedness of the Company by approximately $14.5m and the net indebtedness of the Company will be approximately $2.5m as a result. The cash from the disposals above will be used to settle the costs of the Administrations of the Company and HEL including the above transactions and then on a pari passu basis in accordance with the statutory priority the remaining liabilities of the Company and HEL, stemming largely from the original acquisitions, listing and diligence on possible further acquisitions. As noted above, the Company and HEL have therefore entered into administration. The Company's shares will remain suspended from trading on AIM.
Further announcements will be made by the Company as and when appropriate.
For further information, please contact:|
|swizz, the way things are in this market (i.e. look at cpp) it would not surprise me to see zatt trade again..|
|Common sense kicking in?........GL S
RNS Number : 9384K
05 August 2013
For immediate release 5 August 2013
('Zattikka' or the 'Group')
Zattikka, the online games entertainment group, makes the following update.
Further to its announcement on 22 July 2013, the Company announces that it has agreed with the Hattrick Loan Note holders a time extension in respect of the demand by the Hattrick loan note holders for the payment of certain loan note interest, in an amount of GBP0.275m, until the close of business (London time) today Monday 5 August 2013.
A further announcement will be made by the Company in due course.|
|They over paid massively for all the businesses so the fact the vendors may lose out on the shares is neither here nor there.|
|swizz - your probably correct. i.e. Hattrick's previous owners (now co owners of Zatt!!) sold their coy for £21.5m during IPO receiving £9m cash.. now,, in effect they could get their coy back for free (or it seems they are trying to?), thus banking that £9m cash at the same time!! all for nothing...shocking.. How was this IPO deal ever allowed?.
By appointing administrators (probably this week) this would answer all these questions and stop anyone trying to fleece zatt. Thing is,,,all the going's on seem to be from within?. Up to the big II's now to obtain answers. Cant really see the IP being worth much following a lengthy administration process either, therefore Hattrick may well have shot themselves in the foot here..|
|stinger - spot on, it just beggars belief this is unravelling the way it is, but sometimes the ones who appear to be loosing the most, can somehow end up being the ones that gain!, I just hope the major backers of the IPO, are looking through this with a fine tooth comb!........GL S|
|swizz, as per your post 163 - 'They paid approx £21.5M for Hattrick (circa £8.7m cash, £8.5m loan notes, £2.6m shares), approx £13.5M for Concept Art House (circa £4.4m cash, £2.4m loan notes and £7m shares) and approx £5.6M for Sneeky (circa £1.6m cash, £1m loan notes and £2.9m shares'
As above - A lot of the major share holders are the Hattrick/CAH/Sneeky founders...therefore they stand to lose there as well. Silly really, but hey who knows, this may have been a scam from the start with II's suckered to.
£10m or so was raised at IPO at £1 PS, it seems they overpaid for Hattrick by £10mil alone at least. Maybe they got Hattricks future earning figures totally wrong?, however more likely something else!, as its such a short space of time since positive updates were issued re Hattrick. Something not right?.|
|Well at least the business units are active, both Sneeky and CAH fully engaged with lot's of stuff........GL S
Red Bull feature on Arena for Heroes, what wonders a bit of product placement could or would do within some of the companies games?
|Seems as though 1 or 2 parties are cutting there nose off to spite their face here. If they could have negotiated then it could have been a going concern with prospects.
Seems as though administrators will be appointed with all parties losing out....absolute madness!|
|Duxy - I have just sent a note over to you.......GL S|
|the stinger - Thats what also rattles me, even in June the news flow was leaning towards a framework of a deal with the loan note holders, something certainly smells around this........GL S
Snapshot from June update..........
"Zattikka, the online games entertainment group, is pleased to provide an update on a new secured working capital facility and the Group's unsecured loan notes.
As part of the acquisition of Hattrick Holdings Limited, Concept Art House Inc. and Sneaky Games Inc., the Group issued certain unsecured loan notes, totalling $11.9m in aggregate, to the vendors of each of the acquired entities (the "Hattrick Loan Notes", "Concept Loan Notes" and "Sneaky Loan Notes", respectively, and together the "Original Loan Notes"), the terms of which are set out in the Company's Admission Document dated 16 April 2012. The Original Loan Notes were re-payable on 16 April 2013, with a one year extension at the option of the Group to 16 April 2014, which was exercised in March 2013. The Original Loan Notes also contained certain consent rights relating to, inter alia, the incurrence of additional indebtedness by the Group. The Hattrick Loan Notes, in addition, contained certain consent rights relating to the acquisition or disposal of shares or material assets, and the issuance by the Company of further equity.
The Group is pleased to announce that the holders of the Original Loan Notes have agreed to extend the final maturity date of each of the Original Loan Notes to 16 October 2014, permit the establishment of a secured working capital facility (as described more fully below) and provide certain conditional consents to the completion of further acquisitions and to the Company raising further financing. The Company is not currently in active in further financing (other than in relation to the new working capital facility outlined below), nor proposing the completion of any further acquisition at this time.
In addition, the Group has agreed with the holders of the Original Loan Notes that the Group shall have the right to refinance and restructure the Original Loan Notes prior to 30 November 2013. With respect to the Hattrick Loan Notes and Concept Loan Notes, if the Group redeems 50 per cent of the relevant Original Loan Notes, then 25 per cent of the relevant Original Loan Notes will convert into ordinary shares and the remaining 25 per cent of the relevant Original Loan Notes will convert into a new convertible unsecured loan note due in April 2016 with a floating annual interest rate of 9.5 per cent over the base rate. Similarly, with respect to the Sneaky Loan Notes, if the Group redeems 20 per cent of the Sneaky Loan Notes, then 80 per cent of the Sneaky Loan Notes will convert into ordinary shares.
The new loan note instruments (the "New Loan Notes") to be issued on conversion of the Hattrick Loan Notes and Concept Loan Notes will be on terms similar to the Original Loan Notes but will not contain any consent rights in favour of the holders of the New Loan Notes."|
|Makes you wonder?? just a few months ago all was fine..according to their updates. Seems like some kind of con here. Who knows, however £10 mil raised only a year or so ago...someone has made a lot.|
|Cheers duxy.......GL S
A snap shot of my most recent email, still no response either!......
"I read with further dismay the update provided to the market today,
Can I also ask for the courtesy of a reply from at least someone in Zattikka!
Could I also ask the following......
1) Have you reviewed the option of a placing to raise with funds with new and existing shareholders?
2) Have you reviewed the option of a debt for equity swap with the loan note holders?
3) Have you requested an extension to the credit line facility with Barclays?
4) Has the relationship with the loan note holders deterioated to such a point, that you can no longer have an adult conversation with each other?
It just beggars belief that other than what would appear to be the towel been thrown in, that not more can be done to try and salvage this business, or is the lack of activity an acknowledgement that the business was fundamentally flawed from the beginning?
Surely just over one year more can be done with the backing and support of your shareholders both institutionaly and private,"|
|Thank you Swizz.Am on it like a car bonnet, this lot cant just escape in to the ether.Hope your reading the RNS's this lot are pushing out. I raised the questions:1. that they have cash, so why not just pay some and get deferred terms on the rest.2. Offload Hattrick to original owners for free and some debt. Sell rest on open market?3. Raise equity from investors for the rest?That's just the start....I have also advised that an official complaint will be going to the FSA to investigate the shorting practices on ZATT shares prior to going in to Administration, should my questions go unanswered. It goes on....No point taking it lying backwards.All the best...Duxy|
|Can't pay????? They had 900k in cash????|
first day of dealings AIM 16th April 2012
suspension of dealings on AIM 29th July 2013
An eventful 15 months.
Having read the history briefly you have to wonder how something likes this can ever be allowed to come to market.
Good luck to those who've invested here.