18th Jan 2007 14:56
Chariot (UK) PLC18 January 2007 For immediate release 18 January 2007 Chariot (UK) plc ("Chariot" or the "Company") Disposal of the Company's trading operations On 16 January 2007, the Board of Chariot announced that it had been evaluatingproposals received from a number of parties relating to the disposal of theCompany's assets. The Board announces that it has today sold certain of the assets of the Companyto NetPlay TV plc ("NetPlay TV") for an aggregate consideration of £140,500 incash (the "Transaction"). The consideration will be received by the Company onor before 19 January 2007. Pursuant to the Transaction, NetPlay TV will acquirefrom the Company the intellectual property rights attaching to Chariot's onlinecharity lottery, monday, as well as Chariot's entire player database. NetPlay TVwill, with immediate effect, take responsibility for the operation and operatingcosts of monday and have the benefit of monday's revenues. Chariot will givecertain assistance to NetPlay TV for an approximate four week period followingthe Transaction in order to provide an orderly transition (including the ongoingservicing by Chariot of existing contracts, for which an estimated £40,500 ofthe consideration proceeds will be used). Following the completion of theTransaction, save for in assisting NetPlay TV in an orderly transition, Chariotwill cease to be involved with, or operate, the online charity lottery, monday,or any associated games. NetPlay TV (formerly Stream Group plc) is an AIM listed company focusing oninteractive TV gaming. NetPlay TV acquired Vegas 247 Limited, a TV productioncompany that produces the interactive TV game "Live Roulette" on Sky Channel847, in December 2006. The company operates this programme under a UK gaminglicence. NetPlay TV believes that combining the current player base of mondaywith its TV production skills to produce a live, interactive TV lottery showwill give players an enhanced experience and that linking the flexibility of theinternet with the traditional TV broadcast will add further trust andcredibility to the monday game. In view of the nature of the Transaction (which will result in a fundamentalchange to Chariot's business), Chariot would ordinarily be required, under Rule15 of the AIM Rules, to obtain prior shareholder approval for the sale ofChariot's assets to NetPlay TV. However, due to Chariot's financial position andon the basis that Chariot has received undertakings from shareholders who holdover 50% of Chariot's issued share capital (including the members of the Boardwho own 18.4% of Chariot's issued share capital) that they support theTransaction, Chariot has received dispensation from the AIM Team from therequirement under the AIM Rules to obtain prior shareholder approval for theTransaction. The Transaction will result in Chariot disposing of all of its trading businessactivities and, as a result, Chariot will, following completion of theTransaction, be treated under Rule 15 of the AIM Rules as an investing company.Shareholders of the Company will be provided with, in line with Schedule 2(j) ofthe AIM Rules, information on Chariot's investing strategy in the announcementof the Company's interim results for the period ending 31 October 2006 (to bereleased by 31 January 2007). The Board currently anticipate that Chariot wouldseek to find a business to reverse into it. Such a business would notnecessarily be a lottery operation. The proceeds receivable by Chariot pursuant to the Transaction (other than thoseused to provide an orderly transition to NetPlay TV) will be used to fund thewinding-down of its current operations (including costs relating to theTransaction) and continuing liabilities and, thereafter, to support Chariot'sinvestment strategy. Peter Jones, the Chairman of Chariot, commented: "Despite our best efforts we have unfortunately been unable to secure anindependent future for the monday lottery. Nevertheless, we are delighted thatthe monday game will continue under the new ownership of NetPlay TV. Whilst itis disappointing that Chariot will no longer operate the lottery, everyone atChariot is proud of having raised over £1.65 million for the charity partnerssince May and delighted that this transaction allows the charity partners andplayers to continue to benefit from monday. Following the completion of the sale of the game to NetPlay TV the Company willadminister the run-down of its operations and the Board anticipate that it willhave sufficient cash to cover these reduced operations for a period of time. TheBoard intend also to seek a suitable acquisition for the Company." Further announcements will be made as appropriate. Enquiries Chariot (UK) plc Tel: 0870 380 2121Matthew Waterman Noble & Company Limited Tel: 0207 763 2200Nick NaylorNick Athanas This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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