11th Aug 2015 08:02
LONDON (Alliance News) - PCG Entertainment PLC on Tuesday reported a wider loss in 2014 due to costs associated with its flotation on AIM and other charges, and said it has entered into a conditional agreement to acquire Center Point Development Corp in a reverse takeover for up to USD20 million.
The Asia-Pacific online gaming and media company, which listed on AIM in December, said it made a pretax loss in 2014 of USD8.7 million, compared with the USD2.7 million loss it made in 2013. However, it did make a revenue of USD4,450, having failed to generate any revenue the year before.
It said that its loss widened due to costs associated with its flotation, administration and setup, share issues and goodwill impairments, but noted that the costs were higher than anticipated as a result of a delay in listing on AIM, a change in nominated adviser and associated additional professional fees.
"We believe that actions taken by the company up to and immediately following our admission to AIM in December 2014 put us in a position to be able to deliver profitability and greater shareholder value in 2015 and beyond," Chairman Kung-Min Lin said in a statement.
PCG said it has entered into a conditional agreement to acquire Center Point Development Corp, a gaming software and ancillary services distributor in Asia, in a reverse takeover.
It will pay an initial consideration of USD10 million through the issue of PCG shares, and a maximum deferred consideration of USD10 million through the issue of further shares.
CPDC made a pretax profit of USD2.3 million and revenue of USD9.4 million in 2014.
"PCG Entertainment's acquisition of the profitable Center Point Development Corp and subsequent reverse merger is expected to be transformational for the group. We will continue to focus on growing the group's businesses organically, and the anticipated cashflow from CDPC will enable us to accelerate this growth through strategic acquisitions. The merger also increases the number of territories in which the group has a presence and enables us to benefit from the gaming experience, local knowledge and strong relationships the CDPC management has built up in the region amongst major gaming software distributors and agents," Chief Executive Nick Bryant said.
"We hope that the enlarged group will be well placed to take advantage of a growing market," he added.
Shares in PCG resumed trading on AIM on Tuesday, quoted at 5.47 pence, up 4.3% from its last trade in February.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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