LONDON, May 17 /PRNewswire-FirstCall/ - World Gaming plc, an internet
Gaming Software provider (the "Company" or "Group") offering a comprehensive
suite of products and services for internet gaming Operators, is pleased to
announce today the commencement of trading on AIM under the symbol WGP. The
Company has raised a total of pnds stlg 2,499,000 at 52.5 pence (US$1.00) per
share. Daniel Stewart & Company plc is acting as Nominated Adviser and Broker.
PLACING STATISTICS
- Issue Price: 52.5p;
- Number of new Ordinary Shares being placed: 4,760,000;
- Gross proceeds of the Placing receivable by the Company:
pnds stlg 2,499,000;
- Net proceeds of the Placing receivable by the Company:
pnds stlg 2,029,000;
- Proportion of the Enlarged Share Capital represented by the Placing
Shares: 13 per cent.;
- Number of Ordinary Shares in issue at Admission: 37,985,203; and
- Market capitalisation at Admission at the Issue Price:
pnds stlg 19,262,632.
THE BUSINESS
World Gaming is an internet Gaming Software provider offering a
comprehensive suite of products and services for internet gaming Operators
and white-label partners. World Gaming offers a wide range of integrated
online gaming solutions including sportsbook, racing, casino and poker,
supported by comprehensive e-commerce, customer service and back-office
management systems.
Through its wholly-owned subsidiaries, the Group licenses the Gaming
Software and provides a complete package of related services for which it
charges a royalty and other fees to Operators.
Prior to October 2004, the Gaming Software was owned and developed solely
by the Group through its wholly-owned subsidiaries. A joint venture agreement
with Sportingbet Plc ("Sportingbet") was entered into in October 2004,
pursuant to which the Gaming Software was transferred to an equally owned
exempt liability partnership with Sportingbet.
The Gaming Software is an established and reliable product which provides
internet gaming Operators with a user-friendly, fully integrated, high quality
interactive platform. World Gaming, through its wholly-owned subsidiaries, can
provide flexible offering for Operators, varying from full service white-label
solutions to simply providing software and hosting. Such flexible solutions
enable the Group to reach a wider spectrum of on-line Operators and meet their
customised on-line gaming site requirements.
The Gaming Software, supplemented in certain cases by integrated third
party products, provides a suite of software to allow Operators to design,
operate and manage on-line gaming websites. The full suite covers sports
betting, horse racing, casino, virtual games and on-line poker. The Group
sublicenses virtual games to enhance its casino offering and also sublicenses
an on-line poker product from a supplier who has a specialist product in that
area.
The Directors believe that few rival providers offer such a comprehensive
suite of integrated products. World Gaming currently licenses the gaming
Software to eleven Operators. The Group is now actively seeking to add further
quality licensees and white-label partners.
In May 2001, ADRs representing Ordinary Shares of World Gaming began
quotation on the OTC Bulletin Board. The OTC Bulletin Board is a quotation
service for over-the-counter securities operated by NASDAQ, although such
securities are not actually listed on The NASDAQ Stock Market.
RESULTS FOR THE YEAR TO 31 DECEMBER 2004
After a reorganisation of the Group's operations in the year, turnover of
$16.288m (2003: $17.698) was achieved, resulting in an operating profit of
$5.080m (2003: $2.330m). After exceptional items of $12.187m in respect of a
transaction with Sportingbet in the year, profit before tax grew to $17.370m
(2003: $3.108m).
CORPORATE STRATEGY
The Directors believe that the Group's current Management has been
successful in reorganising and turning around a business which, despite
valuable assets, relationships and market position, had been experiencing
difficulties. The Directors believe that the Group now has strong
relationships with its Licensees and suppliers, an attractive product offering
and a strong financial and operational base from which to exploit further
growth opportunities in its core software licensing model. In addition, the
Group has strong cash reserves and a positive cash flow. Accordingly, the
Directors will continue to examine business opportunities and potential
corporate transactions which they believe will broaden as well as increase
revenue streams, enhance shareholder value and reduce risk in the business.
AMENDMENT
The number of shares being applied for is 37,985,203 rather than
37,585,203, as disclosed in the Admission document published on 12 May. This
is due to the exercise of 400,000 options, on both 15 and 25 April 2005.
Accordingly, the number of Options outstanding prior to the Placing is
10,088,433, rather than the 10,488,433 as disclosed in the Prospectus.
THE BOARD
The Group's strong Board brings with it a wealth of experience in both
the internet gaming sector and senior management.
The Directors of the Company are:
James Grossman, Non-Executive Chairman
James is an attorney with experience in the international business,
corporate, and venture capital areas.
Daniel Moran, Chief Executive Officer
Daniel has over 15 years of international business experience, primarily
in the technology and Internet sectors. Most recently, he was the Managing
Director for Sportingbet Australia.
David Naismith, Chief Financial Officer
David is a qualified chartered accountant with several years experience
in Internet gaming in various jurisdictions, most recently holding a senior
finance role with Sportingbet.
Jon Moss, Sales and Marketing Director
Jon has 8 years senior management experience in the e-gaming sector.
Immediately prior to his appointment at World Gaming, Jon held the position of
Business Development Director at WagerLogic Limited, the licensing and
services subsidiary of CryptoLogic Inc., one of the industry's leading
e-gaming software providers.
Clare Roberts, Non Executive Director
Mr Roberts has served as a Director of the Company since 18 October 2000
and was Chairman of the Board from 20 November 2002 to 11 April 2003.
Michael Cumming, Non Executive Director
Michael has over 35 years of experience in the field of Private Equity.
He is currently Chairman of Mercia Fund Management, Matrix Venture Fund VCT
PLC, Private & Commercial Finance Group PLC and UK Smaller Companies Tracker
Trust PLC
Commenting on today's listing, Daniel Moran, Chief Executive Officer: "We
are delighted to have listed on AIM today. Given the current strength of the
online gambling market, we believe that our UK listing will offer a great
opportunity to continue the development of the Company. We are delighted to
welcome our UK institutional shareholders and look forward to driving the
Company forward and providing exceptional value for shareholders."
Additional Information
World Gaming's Ordinary Shares are traded on the London Stock Exchange,
Alternative Investment Market ("AIM") under the symbol WGP and the Over The
Counter Bulletin Board market in the U.S. under symbol WGMGY.
The Ordinary Shares for the purposes of this release have not been and
will not be registered under the U.S. Securities Act of 1933 (the "Securities
Act") and may not be offered or sold in the United States or to a U.S. person
(as such term is defined in Regulations S under the Securities Act) absent
registration or an applicable exemption from registration under the Securities
Act.
Corporate background
World Gaming plc is a UK-based I-gaming software and e-business services
Group. The Group is an international developer, licensor, and provider of
online gaming products, including casino, sportsbook, and pari-mutuel betting.
For more information about World Gaming plc, visit the Group's Web site at
http://www.worldgamingplc.co.uk.
Interactive Systems Inc., a subsidiary of the Group incorporated and
operating out of Antigua, licenses its gaming software to third parties for an
initial licensing fee and monthly royalties. Alea Software Inc., in
participation with World Gaming plc develops gaming software and web pages.
Contact: Investor Relations
World Gaming plc
investor.relations@worldgaming.com
Special note regarding forward-looking statements
We make certain forward-looking statements in this document within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Private Securities
Litigation Reform Act of 1995 provides a safe harbour for forward-looking
statements. To comply with the terms of the safe harbour, we note that a
variety of factors could cause our actual results and experience to differ
substantially from the anticipated results or other expectations expressed in
our forward-looking statements. When words and expressions such as:
"believes," "expects," "anticipates," "estimates," "plans," "intends,"
"objectives," "goals," "aims," "projects," "forecasts," "possible," "seeks,"
"may," "could," "should," "might," "likely," "enable" or similar words or
expressions are used in this document, as well as statements containing
phrases such as "in our view," "there can be no assurance," "although no
assurance can be given" or "there is no way to anticipate with certainty,"
forward-looking statements are being made. These forward-looking statements
speak as of the date of this document.
The forward-looking statements are not guarantees of future performance
and involve risk and uncertainties. These risks and uncertainties may affect
the operation, performance, development and results of our business and
could cause future outcomes to differ materially from those set forth in our
forward-looking statements. These statements are based on our current beliefs
as to the outcome and timing of future events, and actual results may differ
materially from those projected or implied in the forward looking statements.
Further, some forward-looking statements are based upon assumptions of future
events which may not prove to be accurate. The forward-looking statements
involve risks and uncertainties including, without limitation, the risks and
uncertainties referred to in our filings with the Securities and Exchange
Commission, including our most recent Form 20-F.
We undertake no obligation to publicly update or revise any forward-
looking statements as a result of future developments, events and conditions
outside of our control. New risk factors emerge from time to time and it is
not possible for us to predict all such risk factors, nor can we assess the
impact of all such risk factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ
significantly from those forecast in any forward-looking statements. Given
these risks and uncertainties, investors should not overly rely or attach
undue weight to our forward-looking statements as an indication of our actual
future results.
SOURCE World Gaming plc
