XLMedia has provided an update on the proceeds from the sale of assets related to its businesses in Europe and North America.
In March, the company reached an agreement to sell its European and Canadian sports betting and gaming assets to Gambling.com Group, completing the deal in April.
In October, XLMedia announced plans to sell its North American business to Sportradar, with the deal successfully completed in mid-November.
Following the completion of both transactions, XLMedia became an AIM Rule 15 Cash Shell and proposed an initial tender offer of up to £16m ($20.3m), which represents approximately half of its estimated total available cash value.
The company also confirmed that it will not attempt to make an acquisition that constitutes a reverse takeover or become an investment company.
XLMedia estimates potential earnings from its assets in Europe and North America to be in the range of $3m to $4m, with the possibility of reaching up to $5m, although the exact figure is still unknown.
As the group closes down, costs between $11m and $13m are expected, which will be used to cover expenses such as redundancy payments, tax settlements in each jurisdiction where it operates, and other obligations.
XLMedia Independent Non-executive Chair Marcus Rich said: “The Board wishes to maximise the return of value to shareholders while ensuring that the Group’s operations are brought to an orderly close, and are reviewing the structure of the board in overseeing the efficient winding down of the group.”
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