Jackpotjoy inks services deal with Gaming Realms
Gaming Realms has inked a services agreement and loan deal with peer Jackpotjoy Group.
The game developer said it had entered into a 10-year framework services agreement with the online gambling firm. As part of the deal, Jackpotjoy will receive various real-money games services – including its Slingo Originals content – at favoured terms.
In a separate deal, Jackpotjoy entered into a GBP3.5 million secured convertible loan agreement with Gaming Realms. The five year loan will carry an interest of three month London Interbank Offered Rate plus 5.5%.
The loan will be secured over Gaming Realms’ Slingo assets and business.
At any time after the first year, Jackpotjoy can convert all or part of its principal into shares. Any such conversions will be issued at a 20% discount to the prevailing share price.
Should the conversion price be below Gaming Realms nominal share value of 10 pence the shares will be converted at nominal value with the difference paid in cash.
If the loan be converted in full, the maximum dilution to Gaming Realms shareholders by approximately 12%.
Gaming Realms also repaid the outstanding USD4.5 million due to RealNetworks Inc as the final tranche of the asset purchase agreement.
In 2015, Gaming Realms agreed to acquire assets – including the Slingo brand – from RealNetworks for USD18 million. The deal involved an initial USD10 million and two further tranches a year and two years after. Payment of the final tranche was extended in July.
“We are extremely pleased that the Jackpotjoy group chose us as a long-term services partner”, Gaming Realms Chief Executive Officer Patrick Southon said. “Developing creative and innovative content is at the forefront of what Gaming Realms does well, and through this relationship we hope to not only acquire new Slingo players and add to the existing user experience, but also to open up new opportunities for further collaboration.”