British three-dimensional online poker software developer Playwize has ceased operations and made every member of staff redundant following ‘very disappointing trading results and the substantial losses incurred as a result’.
Playwize voluntarily suspended trading on the London Stock Exchanges’ Alternative Investment Market in July in order to clarify its financial position after posting half-year pre-tax losses of $1.062 million with sales of just $24,258. Two months earlier, the firm had rearranged the terms of a stand-by convertible loan with the Headstart Global Fund and Headstart Global Aggressive Fund. It revealed that $1.132 million of this facility remains outstanding with the hedge funds currently looking for partners who would be willing to take over Playwize and its debts.
“Due to very disappointing trading results and the substantial losses incurred as a result, the Playwize group has ceased all trading operations and made all of its employees redundant,” said John Corre, Chairman for Playwize.
In a statement, Playwize revealed that it had agreed deals on the sale of its proprietary software technology but still needed permission from shareholders in order to complete the move with any proceeds going to creditors.
”Following completion of the sale and after settling all creditors, the company will have approximately $64,690 of cash remaining in the bank,” read the statement.
“This amount is subject to the debenture in favour of the Headstart funds given by the company as security for the $1.132 million of convertible loan notes issued by the company to Headstart, which are outstanding and have accrued interest of a further $40,431 to date.”