10 year services agreement with Jackpotjoy group

RNS Number : 4353Z

Gaming Realms PLC

15 December 2017

 

15 December 2017

Gaming Realms plc

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

Gaming Realms signs a 10 year framework services agreement and a 5 year convertible loan agreement for £3.5m with Jackpotjoy group.

Gaming Realms plc (AIM:GMR), the developer, publisher and licensor of mobile real money and social games, is pleased to announce that it has entered into a 10 year framework services agreement with the Jackpotjoy group for the supply of various real money services on favoured terms, which will include "Slingo Originals" content. The Company has also entered into a separate agreement for the provision of JackpotHappy.com, a white label site on the Gaming Realms proprietary platform.

The Jackpotjoy group has also entered into a secured convertible loan agreement with the Company (the "Convertible Loan") totaling £3.5m. The Convertible Loan will be for 5 years and will carry interest at 3 month LIBOR plus 5.5% and will be secured over the Company's Slingo assets and business. At any time after the first year, the Jackpotjoy group may elect to convert all or part of the principal amount of the Convertible Loan into ordinary shares of the Company, such shares to be issued at a discount of 20% to the share price prevailing at the time of conversion. To the extent that the price of conversion per Gaming Realms share would otherwise be lower than 10p (the nominal value), then the shares can be converted at nominal value and the difference paid in cash. Under this arrangement, the maximum dilution to Gaming Realms shareholders will be approximately 12%, assuming the Convertible Loan is converted in full.

Gaming Realms has now paid RealNetworks Inc the outstanding sum of $4.5m due as the final tranche of the Asset Purchase Agreement signed on 10th August 2015 and extended on 19th July 2017.

Patrick Southon, CEO of Gaming Realms, said: "We are extremely pleased that the Jackpotjoy group chose us as a long-term services partner. Developing creative and innovative content is at the forefront of what Gaming Realms does well, and through this relationship we hope to not only acquire new Slingo players and add to the existing user experience, but also to open up new opportunities for further collaboration."

Enquiries:

Gaming Realms plc                            Patrick Southon, CEO Mark Segal, FD	0845 123 3773
Peel Hunt LLP, Nomad and Broker  Dan Webster George Sellar	020 7418 8900
Yellow Jersey                                      Charles Goodwin                                 Georgia Colkin                                    Abena Affum	07747 788 221

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Notes to Editors

Gaming Realms creates and publishes innovative real money and social games for mobile, with operations in the UK, U.S. and Canada. Through its market leading mobile platform and unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies.

 

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