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Monday 20th November 2006
Aim-listed online gaming group Fairground Gaming has announced in a company statement that it is to go into liquidation following the sale of its gaming businesses, with shareholders to receive a cash payment of around 21.5p per share.
The statement said the company had decided that after it stopped taking business from US customers in its casino and poker activities, the optimal course of action was to dispose of its gaming operations and infrastructure.
Its Spin Palace business is to be sold back to its original vendor, Seahouses, for a total consideration of £11.1m, consisting of a cash payment of £5.1m and the effective cancellation of all Seahouses' holding of shares and warrants in Fairground.
Evan Hoff, chief executive of Fairground Gaming said, 'The closure of our US-facing activity and the impact of that legislation on the listed company environment continues to be deeply felt, with our business now only marginally profitable.'
On completion, the board says it intends to liquidate Fairground and to distribute the cash balance to the remaining non-Seahouses shareholders as a return of capital.
Subsequent to the disposal, the company expects that it will be left with approximately £6,160,000 in cash after providing for winding-up costs and fees, equivalent to 21.5p per share.
Source: OnlineCasinoNews
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