Acquisition of Challenge Jackpot database25 Mar 2010
- Acquisition of Challenge Jackpot database from Virgin Media Television
- Termination of Virgin Media Television option agreement
NetPlay TV and Virgin Media Television ("VMTV") have agreed significant revisions to their agreement announced on 7 April 2009. The Company has also agreed terms with VMTV for the termination of the option agreement entered into on 7 April 2009 under which VMTV was granted options over 14.9m ordinary shares being 9.9 per cent of the share capital then in issue at a price of 18p per share (the "Option Agreement").
Under the revised agreement NetPlay TV will take control of the current Challenge Jackpot database and terminate the Option Agreement in exchange for a fixed cash payment of £1.82m. The current database generated £2.9m of gross gaming margin from 12 May 2009 to 31 December 2009 and was subject to a revenue share agreement. Under the revised terms all revenues arising from this database will be retained by NetPlay TV, with VMTV receiving fixed monthly payments that reflect the value of its airtime.
Commenting, Martin Higginson, Group Chief Executive of NetPlay TV plc, said:
"The revised terms of this deal allow us to invest in the future development of the Challenge Jackpot brand, as well as the ability to extend it onto other channels.
"We see 'Challenge Jackpot' as the mass market gaming channel in our portfolio, something for everyone. Over the coming months we will introduce more live TV games allowing us to broadcast to wider audiences at peak times.
"Termination of the option agreement is a good use of the Company's cash reserves. It reduces the threat of dilution for all shareholders."
NetPlay TV plc
Martin Higginson, Chief Executive Officer
Emma Kane / Mike Ward
Tel: 20 7566 6700
Dominic Morley / Stuart Gledhill
Tel: 020 7459 3600
Notes to Editors:
- Publication photographs are available from Redleaf Communications or www.redleafpr.com
About NetPlay TV plc
NetPlay TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlay TV operates a number of interactive gaming services under UK, Malta and Alderney gaming licenses, including www.SuperCasino.com, Challengejackpot.com and www.bingos.com. These services can also be viewed 24 hours a day live on Sky Channel 866 and 867, every evening on the terrestrial channels, Five, and STV, plus Freeview on Virgin 1 (12 midnight - 3am), Bravo 2 (1am - 4am) and 24/7 on Virgin Media channel 141.
The Company is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.