Nektan closes $4.2m funding round
Mobile gaming platform provider will use additional funds to expand its footprint in the US market
Nektan has secured a new $4.2m financing package as it looks to grow its footprint in the US market and support its expanding European business. [private]
The mobile gaming platform provider said the additional funds would underpin expansion in the US tribal and casino market, where it has launched with 12 operators with a further 22 in the pipeline.
Back in November last year, Nektan signed a joint venture agreement with online and land-based slots developer Spin Games to bring in-venue mobile gaming to the US market.
âRespin, our US joint venture, is continuing to build on its strong momentum as it accelerates the addition of new contracts with casino partners for Xtraspin wheels,â Gary Shaw, Nektan chairman, said.
âThis additional funding, which attracted a number of new investors plus the continuing support of existing shareholders, will be used principally to help Respin further capitalise on its first mover advantage.â
The funds were raised through the issue of $3.6m in convertible loan notes and the placing of 232,258 new ordinary shares of $0.02 each.
Nektan said the ordinary shares have been placed with Octopus Investments at a price of $2.37 per new share, raising gross proceeds of $0.55.
Octopus Investments subscribed for $0.92 of the total amount of the $3.6m loan notes, taking its stake in Nektan to 15.5%.
Earlier this year Nektan closed a $10.8m funding round which came just a month after the firm warned of a need for fresh cash after posting a maiden H1 loss.