SBC News Voice of the Sports Betting Industry
Igaming mobile content and platform provider Nektan has announced that it has secured £7.1 million in its latest financing round.
Nektan confirmed that it had raised £4.7 million of the financing sum by issuing convertible loan notes. The mobile platform provider additionally secured the rest of the financing sum by utilising its £600,000 loan from Disruptive Tech Ltd and selling 1 million company shares at a gross price £1.7 million.
The London Aim listed company will use the funds raised to expand its European business services, and launch its new white-label mobile platform in partnership with The Sun newspaper for the UK market.
In its latest financial update (March 2015) Nektan PLC had reported half year losses of £2.4 million EBITDA (period ending 31 December). Nektan governance stated that its reduction in revenues was due to the termination of content contracts with sports betting providers, who had chosen to develop mobile products and content in-house
Chief Executive David Gosen commented on the company’s latest financing
“The last six months have seen an acceleration in demand for our mobile, tablet and desktop gaming products and services, most notably with our landmark real money gaming partnership announced with The Sun in the UK”
“The board has continued to consider several funding options for the company, and believes that the financing will ensure the company now has the capital to accelerate its stated investment plans. The company had originally expected to secure further capital in March and therefore the rate of investment and revenue growth over the last two months has not been at the levels originally envisaged by the directors,”
“The directors, however, remain encouraged by the considerable progress in the business and have maintained a tight control over costs. The directors believe that the net proceeds received by the company from the financing should ensure that it is fully funded to get to cash flow breakeven point,”
