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Nektan

  • BY: Andrew Hore |
  • POSTED: 07/03/2016 |

Mobile gaming services provider Nektan is raising up to £2.93m from a convertible loan note issue and a share subscription at 81p a share. 

This includes £300,000 of convertibles being offered to existing shareholders. There were £11.1m of existing convertibles and the terms of the new issue are the same. The interest rate is 10% a year and the conversion price has been rebased to 101.25p a share.

Subscribers to the convertibles get a warrant exercisable at 81.75p a share for every £1 invested in the convertibles – 2.56 million warrants in total.

Nektan’s European and US operations are both growing strongly but not as fast as had been hoped partly down to the delay in a European contract expected to produce net gaming revenues of £7m.

The monthly fixed cost base will be cut by 45% to £270,000 by next month. The cash is needed to enable Nektan to reach EBITDA breakeven in the second half of this financial year. If it does not reach breakeven quickly enough then more cash will be required.

The share price fell 3.75p to 78p. At the end of December, Nektan raised £1.36m at 145p a share but this was followed by the resignation of chief executive David Gosen.
Nektan joined Aim in November 2014 when it raised £4.1m at 236p a share.

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