24/7 Gaming in reverse takeover talks with binary options provider3rd September 2014 7:51 am GMT
UK-listed 24/7 Gaming Group, operator of the WannaGaming-branded mobile casino, said Wednesday that it is in advanced discussions to undergo a reverse takeover with an unnamed binary options provider.
The company said that it has evaluated a number of acquisition opportunities and is now in advanced discussions in respect of a potential transaction which, if completed, is likely to constitute a reverse takeover under Rule 14 of the AIM Rules.
“The potential transaction would involve the acquisition of a company offering binary options trading under the authorisation and regulation of the Cyprus Securities and Exchange Commission,” said 24/7 Gaming.
The company requested that trading in the company's shares be temporarily suspended until either an admission document is published in respect of the potential transaction, or discussions in respect of the reverse takeover are terminated.
24/7 Gaming also announced that it has today raised approximately £360,000 before expenses, by way of a placing of 10,285,714 new ordinary shares at a price of 3.5 pence per share.
The proceeds of the placing are expected to provide working capital, including the costs of due diligence and advisor fees in relation to the proposed transaction. A further, larger fundraise is likely to be required at the time of the potential transaction, the company added.
“Shareholders should note that there is no guarantee that the transaction will be completed,” warned the company. “In the event that it does not complete, it is likely that further funds will need to be raised to meet ongoing working capital requirements.”
Shares in 24/7 Gaming Group Holdings plc (AIM:247) were temporarily suspended this morning at 3.00 pence per share. The shares are trading down 94.29 per cent in the past year.