In March, the company finalized an agreement to sell its Europe and Canada sports betting and gaming assets to Gambling.com Group
XLMedia has shared an update on the proceeds from the sale of its North American and European businesses.
In March, the company finalized an agreement to sell its Europe and Canada sports betting and gaming assets to Gambling.com Group, with the transaction closing in April. Later, in October, XLMedia announced the proposed sale of its North American business to Sportradar, a deal that was completed in mid-November.
Following the completion of these disposals, XLMedia became an AIM Rule 15 Cash Shell. The company has proposed an initial tender offer of up to £16m ($20.3m), representing roughly half of its potential total available cash.
The company has also reaffirmed its decision not to pursue acquisitions that would qualify as reverse takeovers or become an investing company.
While exact figures remain uncertain, XLMedia estimates earnouts from its European and North American assets to range between $3m and $4m, with a possibility of reaching up to $5m.
As part of the group’s wind-down process, costs of $11m to $13m are anticipated to cover expenses such as redundancy payments and settling tax obligations in the jurisdictions where it operates.
Independent Non-executive Chair Marcus Rich stated:
“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.”