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The best Online Gambling stocks! Highflyers 2005
World Gaming AIM to list by Q2 2005
UK-based software firm World Gaming’s planned listing on the London Stock Exchange’s Alternative Investment Market (AIM) is expected to be in place by the second quarter of 2005.
The firm is currently in discussions with London brokers over the listing plans, which will give it access to new capital to fund a planned acquisition drive.
It is also an attempt to gain a higher profile among European firms as the firm tries to grow its client base in the region.
World Gaming is currently listed on the US NASDAQ Bulletin Board exchange, which is an over-the-counter exchange.
But the AIM listing would be a major step forward for the software firm, and it insisted the listing was not solely intended to raise capital.
“We are already a fairly cash-rich company, so we are not looking on this as just a capital-raising exercise,” said John Moss, director of sales and marketing at World Gaming.
However, the firm will be using some of the money raised to fund future acquisitions of other operators and related businesses during the next 12 months.
Existing shareholders will be allowed to continue to trade their shares on the NASDAQ market, although they would be invited to transfer their shares to the AIM market.
World Gaming returned to profitability in 2004, after posting a loss for 2003, and signed a major deal with its largest licensee Sportingbet.
Sportingbet, the UK sportsbook giant, paid US$10m for a 50% stake in World Gaming’s software subsidiary as part of a deal that gives the UK sportsbook a perpetual royalty-free licensing deal.
Sportingbet develops its own software for its European operations, but retained existing deals with World Gaming when it bought the sportsbook.com network of sites in 2002.
And it has now taken control of the day-to-day operations of Inphinity, the World Gaming subsidiary responsible for new software development.
Sportingbet is expected to invest a further US$4.5m in future development costs over the next four years, and crucially World Gaming reserved the right to sell its software to third-parties.