24/7 Gaming cancels acquisition talks with binary options provider17th February 2015 9:06 am GMT
UK-listed 24/7 Gaming Group has decided not to progress with its planned reverse takeover with an unnamed binary options provider, and will now be deemed an 'investing company' under AIM Rules.
The planned acquisition in the binary options sector was first announced by the company last September. While the target remains unknown, it trades under the authorisation and regulation of the Cyprus Securities and Exchange Commission.
In December, 24/7 Gaming’s directors initiated a restructuring of the group in order to focus on the transaction, ceasing operations of both its publishing operations under the Playlogic brand, and casino operations under the Wannagaming brand.
Since then, the company said that it had continued discussions with the proposed acquisition target.
“However, after having considered further the relative early nature of the target business the board has decided to terminate discussions with this target,” said 24/7 Gaming in a statement Monday.
As of February 13th, the company had cash and cash equivalents of approximately £28,000 and outstanding debt of approximately £370,000, excluding the fees owed to directors and management, but no currently active operations.
The company has received non-binding offers from certain existing shareholders for the provision of working capital facilities to enable it to continue to trade.
As a result of the discontinuation of its activities, 24/7 Gaming is now deemed an 'investing company' under AIM Rules. Consequently, the company is required to publish an investing policy and to obtain shareholder consent for that policy.
As an investing company, 24/7 Gaming will be required to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy on or before the date falling twelve months from December 4th 2014, being the date when the company ceased its publishing and casino operations, failing which, the company's shares would then be suspended from trading on AIM.
In the event the company's shares are so suspended, the admission to trading on AIM of the shares would be cancelled six months from the date of suspension and the board would intend to convene a general meeting to consider whether to continue seeking investment opportunities or to wind up the company.
24/7 Gaming said that the online trading services sector, including binary options, CFDs and forex trading, remained an attractive opportunity for the business.
A circular and notice to shareholders convening an Extraordinary General Meeting of the company to seek approval for the adoption of an investing policy for the purposes of Rule 15 of the AIM Rules and for certain other matters in relation to the disapplication of pre-emption rights has been posted to shareholders. The EGM is to be held in Amsterdam on March 9th.
Shares in 24/7 Gaming Group Holdings plc (AIM:247) were trading at 0.875 pence per share in London this morning after a suspension of trading in the company’s shares was lifted Monday.