|Interactive Gaming Holdings (“IGH” or the “Company”), which has been established to acquire majority or total ownership of content portals and other related e-gaming sites within the e-gaming sector, today announces its intention to seek a listing on the AIM exchange in London. Insinger de Beaufort is acting as Nominated Advisor to the Company and Seymour Pierce is acting as bookrunner and the Company’s broker.|
The Company intends to raise £4 million, subject to market demand, through the Placing of Ordinary Shares.
Conditional acquisition of Gambling.com and Reasons for the Placing
In order to implement IGH’s strategy, the Directors intend to use £0.5 million of the net proceeds of the Placing for the acquisition of the business assets of Gambling.com (including the domain Gambling.com). The remainder of the £2.5 million purchase price of the Gambling.com assets will be satisfied through the issuance of £1.1 million of loan notes and £0.9 million of ordinary shares. The balance of the net proceeds of the Placing will be used to enhance and grow the Company’s network of 1,100 gaming related portal sites, advertising traffic referral sites, and white label sites, as well as for possible further acquisitions.
The Directors believe that the Placing will raise the status and market profile of the Company. This increased awareness will, in the opinion of the Directors, strengthen IGH’s ability to attract other valuable acquisition opportunities.
IGH is a new company that has been established to acquire majority or total ownership of content portals and other related e-gaming sites within the e-gaming sector. The Company will operate e-gaming content portals with, what the Directors consider to be, highly recognised and potentially product leading domain names to generate profits from advertising revenue. The Company will also market its own white label casino, bingo, sportsbook and other related sites to its captive customer base.
The Directors’ growth strategy for IGH is two pronged. First, the acquisition strategy will focus on proven and cash generative e-gaming related sites. This is demonstrated by IGH’s conditional acquisition of Gambling.com, a company that generated approximately £3 million of revenue in its most recent fiscal year, and which the Directors consider is the leading established brand name e-gaming portal existing on the Internet today. Gambling.com serves over 2,000 pages of content and has 1,500 different banners across the entire site. The portal attracts over 850,000 unique visitors per month and has over 250,000 regular users. The directors believe that they will be able to introduce operational efficiencies in order to increase the profitability of this business and also other businesses acquired.
Secondly, the Company today controls a network of over 1,100 gaming related portal sites, advertising traffic referral sites and operational casino and bingo white label sites. It is intended that much of this network will be further developed with the application of the proceeds of the Placing. Additionally, organic growth will be generated by improving the look and “feel” of the sites, increased cross referral and professional marketing operations.
Management has widespread experience not only in the arena of Internet gambling sites but also in their development and supervision. (Please see biographies at end of release)
E-gaming has experienced strong growth over the past five years, and the Directors believe that growth will continue. The anticipated key drivers of industry market growth include:
·Higher levels of internet penetration, particularly in non-Western regions of the world
·Existing non-internet gamblers discovering the advantages of utilising the internet as an additional means by which to gamble
·The continued worldwide growth in the numbers of active games playing individuals on the internet
According to research published in 2003 there were estimated to be nearly 9 million internet gamblers, of which 2.3 million were identified as being in North America, 2 million in Western Europe and nearly 3 million in Asia. According to research published by an independent specialist consultancy, in 2003 online gaming revenue (gross win) was approximately £3.6 billion.
IGH’s strategy is to acquire either majority or total control of potentially cash flow generative gaming portal sites, as well as further selective acquisitions of online casino, bingo, sportsbook and lottery sites within the e-gaming sector. IGH will then develop these sites under professional management to improve the usability, look and feel of these sites in order to attract more customers to its associated sites. By leveraging the maximum number of users through the Company’s sites IGH intends to profit from the synergies associated with the consolidation of sites under a significant number of internationally recognised domains, such as Gambling.com. As the Company’s growth plans are achieved, the Directors believe, profits will be enhanced through economies of scale. The customer base will be leveraged using “White Label” e-gaming sites, where IGH will not carry the gaming risk but will simply receive a revenue share. The Directors believe that through the control of the end user customer database and the ability to cross-market multiple types of games to such customers, significant synergies and economies of scale can be achieved.
Management Team and the Company’s Board of Directors
Interactive Gaming Holdings’ management team will be lead by Craig Marshak and Thomas Taulé.
Craig J Marshak – Executive Chairman
Craig Marshak is an experienced investment banker having been a Director at Schroders in London, as well as Nomura Securities, London. He is the co-founder of C.V. Holding, the developer of the highly successful BetheDealer p2p casino gaming platform. After only 18 months of operations, BetheDealer has reached in excess of over 200,000 registered users.
Thomas J. Taulé – Managing Director
Thomas Taulé is an experienced veteran of Internet operations, former CEO of iSleuth.com, a search engine company that was traded on the NASDAQ. He possesses particular expertise in the areas of corporate finance, mergers and acquisitions, site development and site traffic building, as well as the supervision of day-to-day operations. His network of 1,100 portal and gaming related Internet sites have laid the foundation for building Interactive Gaming Holdings.
Baron Menzel - Non Executive Director
Baron Menzel is an established entrepreneur in the e-gaming sector, having founded Internet Bingo Ventures, (IBV) (and its flagship site Bingohour.com) with over 500,000 registered users, as well as presently controlling and operating Blackjack.com and Winsor Processing for payment processing applications.
Michael Wellesley-Wesley - Non Executive Director
Michael Wellesley-Wesley is CEO of Chyron Corporation, which provides graphics solutions for the television broadcast industry. He is formerly an investment banker having worked at Schroders and UBS/Paine Webber, and was instrumental in raising the initial capital for the highly successful launch of freelotto.com, which today has over several million registered users.
Thomas Taulé, Managing Director, said today:
“We've created a prime vehicle to move forward and embark on consolidation within the sector. The quotation on the Alternative Investment Market of the London Stock Exchange will leave us very well positioned to take full advantage of the numerous opportunities that I believe exist in t