Nektan raises £2.1m from share placement

18 April 2019

Gaming platform and services provider Nektan has raised £2.1m (€2.4m/$2.7m) before expenses through a share placement.

Nektan offered 13,978,020 new ordinary shares at a price of 15 pence each, with Gary Shaw, founder and executive officer, subscribing for 4,566,667 new shares at the placing price for an aggregate value of approximately £685,000.

The provider will now apply to begin trading these shares on the London Stock Exchange, with Nektan expecting to be granted clearance by April 29.

Nektan completed the placement yesterday (April 17) and its shares closed the day at 12.05 pence. This morning, Nektan’s shares opened at 12.10 pence each and at the time of writing are trading at 12.75.

“We are delighted to have successfully completed our placing with the ongoing support of existing investors and we wish to welcome our new shareholders at this exciting time in the company’s development,” Nektan CEO, Lucy Buckley, said.

"As demonstrated in our recent results and trading updates, the company is continuing to grow rapidly and expand its global footprint, increasing our gaming content and the partners we distribute this premium content to, which is leading to greater revenues and improving cash generation, putting us on track to report a positive EBITDA for FY2019.”

Earlier this week, Nektan also completed the sale of a 57.7% majority stake in its Respin US subsidiary to Alternative Investment Partners Limited (AIP) for an initial cash consideration of £300,000. This represented a significant drop on a previously agreed deal with another, unnamed buyer. The original purchaser was unable to complete the transaction in the required time period, allowing AIP to step in and renegotiate terms.