Acquisition (4517Y)
December 22 2010 - 7:18AM
UK Regulatory
TIDMTWL
RNS Number : 4517Y
Weather Lottery PLC (The)
22 December 2010
THE WEATHER LOTTERY PLC
Ticker: TWL
("The Weather Lottery", "TWL" or the "Company")
TWL announces the acquisition of Devil Fish Poker Ltd
TWL continues its strategy of creating a Gaming Division to
compliment its well-established Lottery Management business with
the purchase of on-line poker company Devil Fish Poker Limited
("DFP")
Dated: 22 December 2010
The Weather Lottery, the AIM quoted online gaming and lottery
management specialist, is pleased to announce that on 21 December
2010 it entered into a conditional agreement to acquire the issued
share capital of Devil Fish Poker Limited ("DFP") for a total
consideration of GBP330,000 to be satisfied by a cash payment of
GBP40,000 with the balance of GBP290,000 being satisfied by the
issue of up to 30,000,000 new ordinary shares of 0.1p each
("Acquisition Shares"). The acquisition of DFP is conditional only
upon the admission of the Acquisition Shares to trading on the AIM
Market of London Stock Exchange plc ("Admission"). The actual
number of Acquisition Shares will be dependent on the average of
the closing mid-market prices of the Company's ordinary shares on
the three days prior to Admission.
An application will be made for the Acquisition Shares, which
will rank pari passu with the Company's existing issued ordinary
shares, to be admitted to trading on AIM with effect from 30
December 2010.
Highlights
TWL adds the recognised Devil Fish Poker brand to existing
development of its FCBetz.com sports betting brand and its existing
Weather Lottery and new FC Lotto brands.
The DFP acquisition is a further testament to the strategy to
reinvigorate TWL as announced by the Board in Summer 2010.
The Board believes this represents a significant and exciting
opportunity for TWL to bring together its gaming interests trading
under the FCBetz.com brand as announced on July 2010 and which is
marketed through football clubs and recently Bauer Radio Media and
now the DFP brand.
Future development of the gaming operations
The Board believes that the Devil Fish Poker brand is known and
recognized nationally and internationally especially in Europe. TWL
can benefit from what it considers the undeveloped potential to
promote and exploit the brand. It will target from within not only
the existing active players but also the potential amongst the many
thousands of names registered on the DFP data base. In addition
there is the clear opportunity of significant cross selling of
FCBetz.com products and the Devil Fish Poker brand into each
other's respective databases. The Board believes that this, coupled
with a reduction in overhead of DFP by consolidating its marketing
through TWL`s existing channels, will bring long term financial
benefits and accelerate the Board's strategy to become a
significant operator in the online gambling sector.
Development of On-Line Poker
The Board believes that there is potential for significant
international growth based on the existing awareness of the Devil
Fish Poker name and brand. Whilst the sector has experienced some
leveling off, the possibility of further expansion into Asia and,
if legislation should allow, into the United States gives this
already established brand a new and exciting impetus.
Future strategy
The Board's paramount considerations continue to be firstly to
provide increased shareholder value and secondly to do so within a
programme of acquisitions and organic growth which provide a basis
of solid income earning assets, giving TWL the ability to develop
longer term higher yielding new business particularly in the gaming
sector. To this end the continued growth of the core lottery
business is to be maintained and other income earning opportunities
are continually being considered.
Information on DFP
DFP is a 100% subsidiary of Devilfish Gaming Plc ("DEVP") which
is traded on PLUS-Quoted, an unlisted securities Exchange Regulated
Market operated in London by PLUS Markets plc, a recognised
investment exchange and a Market Operator under the Markets in
Financial Instruments Directive (MiFID). In its year ended 30 June
2010, DFP made an operating loss of GBP106,331 on a turnover of
GBP783,353. As at that date, it had net liabilities of
GBP10,802.
TWL Chairman Lord Razzall CBE commented:
"Devil Fish Poker has an established brand name in a sector
which is complimentary to the existing gaming operations of TWL. We
have a growing database of users in both FCBetz.com and FC Lotto
some of whom will we believe wish to take advantage of the DFP
products. The Board considers its acquisition at a time when there
is still considerable untapped potential for development fits in
with our gaming strategy".
ENDS
For further information contact:
The Weather Lottery PLC
Ross White 01777 818036
Website www.theweatherlottery.com
Religare Capital Markets (Nomad) 020 7444 0800
Nick Harriss
SVS Securities (Broker) 020 7638 5600
Ian Callaway/Alex Mattey
This information is provided by RNS
The company news service from the London Stock Exchange
END
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