TIDMPCGE
RNS Number : 4572Z
PCG Entertainment plc
31 August 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
31 August 2018
PCG Entertainment Plc
("PCGE" or the "Company")
PCG Entertainment Plc / Index: AIM / Epic: PCGE / NEX: PCGE
Final Results for the 12-month period to 31 March 2017
PCG Entertainment Plc (AIM: PCGE), is pleased to announce its
final results for the 12-month period to 31 March 2018 (the
"Period"), together with the publication of its audited report and
accounts for the Period (the "Annual Report").
The Annual Report has been published on the Company's website,
www.pcge.com, in accordance with the provisions on the Company's
articles of association, and shareholders are thus duly
notified.
Highlights
Financial Overview
-- The accounts as reported have been prepared for the period
from 1 April 2017 to 31 March 2018.
-- These accounts show that the Group incurred administrative
expenses of US$1,846,951 (2017: US$5,926,477). The 2017
administrative expenses included the impairment of US$3,500,000
relating to the gaming and media content licenses held in China.
This impairment was taken as it was considered prudent given that a
key license had not been renewed at the time of the accounts. All
these licenses have since been renewed and the Khanawake gambling
license remains in good standing.
-- The Company's overall investment in the media and gaming
license businesses remains at US$2.7 million in the current
year.
-- A little over a year ago the Company confirmed the
restructuring which led to the return of the husk of the CPDC
business to the vendors. This was concluded in exchange for the
shares in the Company, which had been originally issued for the
acquisition, other shares identified with the vendors and the
forgiveness of liabilities owed by the Company to the vendors of
CPDC. This produced a net benefit to the group of US$520,000.
-- On 18 August 2017, the Company raised funds via RiverFort
Global Capital, which consisted of two parts. The first part was a
subscription to raise GBP1 million, before expenses, (the
"Subscription") by way of a subscription for 1,000,000,000 ordinary
shares of 0.1 pence each (the "Ordinary Shares") by a syndicate led
by D-Beta One EQ Ltd and including Cuart Growth Capital Fund I
("the Syndicate") at an issue price of 0.1 pence per Ordinary Share
(the "Subscription Shares").
-- The Equity Sharing Agreement was designed for the Company to
benefit from a positive future share performance. At the time this
was concluded the Board strongly believed that we were close to
concluding the environmental project. Accordingly, the Company
negotiated the early termination of the Equity Sharing Agreement,
which was finalised on 27 June 2018 resulting in a final payment to
the Syndicate of US$155,927.
General Highlights
-- As announced and updated earlier in the year we have
investigated investments in ChainZy Plc and Fortune Environmental
which controls the cavitation technology. These are both extremely
interesting deals. While the board believes that that the Company
would achieve a higher return through such investments than simply
leaving the money on deposit, the costs of the regulatory
implications of making these investments in the Company's current
business and financial position has meant that any decision as to
proceed has been placed on hold for now.
-- We have also continued to pursue potential deals with our
various licenses. This has recently borne fruit through discussions
with one of the largest gaming companies in Asia with whom the
Chairman has contacts going back several years.
Board of Directors
-- The former CEO of the Company, who had been in charge
throughout the period of the CPDC ownership, had brought an
employment Tribunal claim against the Company following his
dismissal in March 2017. In the end the settlement reached in
January this year was US$286,350. The payment was less than we had
provided for in last year's accounts and so there is a satisfying
write back of US$140,313 in this year's numbers.
Comment - Chairman Richard Poulden
"The last year has been a frustrating one for PCGE, for the
Board and the shareholders alike. A combination of external
influences and unforeseen delays have left the Company in a holding
pattern from which, I am pleased to say we are now able to move
forward. These factors, lost and still possible deals are outlined
above. The Board and I know that there have been many calls for
updates over recent months, we therefore look forward to reporting
further good news in the coming months.
Thank you all for those who have stuck with us, and the Board
would like to thank particularly those shareholders and supporters
who have understood the unforeseen delays but maintain the bigger
vision we have for the Company. Our aim is to ensure a strong
return to form and on investment for all. This next year should see
less of these challenges and more opportunities to move forward
strongly with interesting deals."
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/4572Z_1-2018-8-31.pdf
For more information on PCGE please visit the Company's website
www.pcge.com.
Enquiries:
PCG Entertainment PLC
Richard Poulden, Chairman Tel: +44 207 812 0645
Allenby Capital Limited
Broker, Corporate Adviser and Nominated Adviser
Nick Naylor/Nick Harriss Tel: +44 20 3328 5656
Damson PR/IR
Abigail Stuart-Menteth Tel: +44 20 7812 0645
Email: pcge@damsonpr.com
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(END) Dow Jones Newswires
August 31, 2018 10:15 ET (14:15 GMT)