Public informed about acquisition abandonment, resignations, loan applications… and Purple Lounge, of course
What’s new at Purple Lounge online casino parent company Media Corporation PLC? A lot! The company issued a number of announcements this week regarding different areas of its business.
One was about the company's reverse takeover plans on Gaming Media Group Limited, which have been abandoned since the company opts for a "preferable deal for shareholders" with the announcement of the acquisition of the soon-to-be launched Intabet online betting platform for a GBP 1.53 million consideration payable by the issue of 152 719 840 new ordinary shares priced at 1p each.
Furthermore, it was announced that Intabet management team members Phil Jackson and Adam Fraser-Harris have agreed to join the Media Corp board as non-executive chairman and chief executive officer respectively. This led to the resignation of Justin Drummond as Chairman and Sara Vincent as interim chief executive officer.
In addition, the company pointed out that a loan agreement of GBP 750 000 was secured from Barclays Bank to provide working capital for the enlarged group and the new betting platform whose launch is being prepared for the 2012/13 football season, subject to gaming licence approvals and final integrations.
Regarding the Purple Lounge issue, the advisory issued by the company said: "With the restructuring of Purple Lounge now underway, the directors believe the acquisition of Intabet will allow the Company to re-establish a newly branded online casino and poker room to run alongside the new betting platform that Intabet provides."
And while some industry observers believe Media Corp's online joint venture with The Hippodrome terrestrial casino may be jeopardized after the Purple Lounge debacle, the company seems to maintain its hope that the deal will proceed.
In his comment on the new events, outgoing Chairman of Media Corp, Justin Drummond said: "This has been a very difficult period for the Group, though I believe with the acquisition of Intabet Limited together with further financing, announced today, the Group can now look forward. I am stepping down today, following the announcement of the Intabet acquisition and I am confident that in Phil Jackson and Adam Fraser Harris, who are being appointed as Chairman and Interim CEO respectively, the Group is in being left in experienced and capable hands. I remain a major shareholder in Media Corp and believe that with the acquisition, new direction and senior management team the Group has an exciting and, I hope, a prosperous future ahead."
In addition, Phil Jackson, newly appointed chairman of Media Corp said: "I am delighted to join the Board of Media Corp at this transitional, yet exciting, time for the Company. The acquisition of Intabet represents a huge opportunity to be involved with a betting platform that we believe could revolutionise the online betting market. The tie up with Media Corp and the access it provides to both the Purple Lounge user base and the online advertising and marketing expertise it has through Eyeconomy should give Intabet the best chance of success, on its launch later this year. I would also like to thank Justin Drummond and Sara Vincent for their many years' service to Media Corp and wish them well in their future endeavours. I look forward to providing further updates as and when appropriate."