Entraction takes back share warranties worth 2.25m
Entraction is to buy 2.25m of warrants to shares comprising almost a fifth of the company.
ENTRACTION IS TO buy 2.25m of warrants to shares comprising almost a fifth of the company.
The warrants to 2,500,000 class B shares are being sold by the Global Betting Exchange Group (GBE), the parent company of Betdaq, for a price SEK21 per share (2.1, £1.8) which at yesterday’s closing price equals a value of the share options of approx SEK80m.
Entraction will acquire the warrants for total SEK23m (2.25m, £2m) if agreed by shareholders at an extra general meeting to be called imminently.
The warrants will be cancelled on execution of the acquisition. Had GBE exercised them, the warrants would have resulted in a dilution of 19.4% of capital, and 15.5% of votes.
Entraction chief executive Peter à ström (pictured) said: “We have enjoyed the support of the Global Betting Exchange Group in agreeing to Entraction acquiring the warrants at a price substantially lower than current trading price. The exercise of the warrants would have incurred a large dilution at a low valuation, relative to the strong development Entraction has shown the past two years. “
As reported on EGRmagazine.com, Entraction’s half-year results showed operating profit up 122% on a year previously, to hit SEK27.3m (2.7m, £2.4m).
Entraction said that the acquisition of the warrants affects the cash flow, but will not affect financial results as the cost is made against equity.
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