Contagious Gaming has announced plans to restructure its European operations in a move the developer said will help reduce costs.
The project will consist of the execution of a share agreement annulment among Digitote Ltd, Digitote Software GmbH Deutschland, Gabriele Knicker, Guenter Boyks and Contagious.
The company said that the restructure would also include the execution of a settlement and service agreement between Digitote Limited and Contagious.
In a statement outlining the project, Contagious said the move would enable it to launch its UK sports betting platform through a “perpetual royalty-free” sports betting software licence.
The firm also highlighted other benefits such as eliminating Digitote’s monthly cash burn of approximately $150,000 (€140,600) associated with the sports betting software operations and development business, as well as Digitote's loan liability of around $700,000 for financing from Knicker and Boyks.
In addition, Contagious said the move will eliminate its contingent consideration liability of approximately $2.1 million, while at the same time providing it with an option for another sports betting software licence to enter other markets.
Peter Glancy, chief executive and director at Contagious, said: “The restructuring of the company is a positive step forward.
“Following the loss of Digitote's largest customer last October, Digitote's operations started burning a significant amount of cash.
“This restructuring eliminates Contagious Gaming’s need to fund Digitote’s monthly cash burn, while at the same time, enables us to launch our UK online gaming platform CNSBet on a royalty-free basis.”
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