An interesting RNS from Worldlink whose shares are still under suspension –
Andrew Ellis secures 51% of Worldlink’s Sports Division
Worldlink Group Plc (“Worldlink” or the “Company”), the UK listed Company with patents on providing changing data in real-time for mobile devices, today announce that Across the Line Limited, a company funded by London based property and football entrepreneur Mr. Andrew Ellis, has acquired a 51% controlling stake of its rapidly growing sports and gaming division Worldlink Sport Limited (“Worldlink Sport”).
In consideration for the investment in Worldlink Sport, Across the Line Limited will provide GBP1.3m to fund upfront commitments required on certain contracts, plus working capital up to a maximum of a further GBP1.2m to fund future deals (the “Ellis investment”). Worldlink will receive a revenue stream of 15% of Worldlink Sport’s future net revenues.
Additionally Worldlink has issued GBP25,000 (250,000) of warrants exercisable at 10 pence per share, GBP25,000 (125,000) of warrants exercisable at 20 pence per share, GBP25,000 (83,333) of warrants exercisable at 30 pence per share and GBP25,000 worth of warrants exercisable at the price at which the Company’s shares are trading following lifting of the Company’s suspension from trading. All warrants are exercisable for a period of 12 months from 11 July 2012.
The Company and Across the Line Limited each has an option to acquire the other shareholders’ shares in Worldlink Sport at its fair value following the signing of Worldlink Sport’s accounts to 31 December 2013 and 31 December 2014. If both parties choose to exercise the option, the party which offers the highest price will be deemed to have exercised the option.
Worldlink Sport has recently entered into Heads of Agreement with multiple high profile sports rights including Premier League teams Sunderland AFC and Newcastle United together with its licensed bookmaking partner, Betbutler as Official Betting and Gaming Partner. Worldlink Sport will now finance these agreements via the Ellis investment and hopes to be able to announce further significant high profile sports rights deals in the near future.
Neil Riches commented: “We are delighted with the agreement reached with Andrew Ellis and the investment into Worldlink Sport Limited. We have concluded many significant deals in the sports market that will mean Worldlink is now a major player in this sector and we look forward to announcing further deals shortly.
Andrew Ellis added “I am extremely pleased to be involved in Worldlink Sport. Worldlink are bringing amazing newtechnology to the betting and gaming sector which is going to provide sports fans a superior betting experience. We are confident that Worldlink Sport will become one of the leading companies in the sports and gaming sector with the rights that we are in the process of acquiring”
This looks like a deal to secure working capital funding for the parent co and so alleviate the requirement for a dilutive equity raising from the Plc – and which senior management with large stakes would be loathe to see. What has piqued our interest is £100,000 of warrants being issued with prices of 20p, 30p and beyond – although a relatively small sum, it seems to imply that management are expecting a pop in the stock on its re-list towards, if not beyond, 20p.