Brief: Digital Bros Says Signed Sale Of 12.5 Pct of U.S. Subsidiary Pipeworks Inc

Digital Bros SpA

21/12/2017 20:26

Dec 21 (Reuters) - Digital Bros SpA  DIB.MI : 
    * SALE OF 12.5% OF US SUBSIDIARY PROVIDES A CASH 
CONTRIBUTION OF 
2.5 MILLION US DOLLARS 
    * GROUP HAS SIGNED SALE OF US SUBSIDIARY PIPEWORKS INC. TO 
AN 
INVESTOR GROUP LED BY NORTHERN PACIFIC GROUP, A US PRIVATE 
EQUITY FIRM 
    * DIGITAL BROS - TERMS PROVIDE FOR SALE OF 12.5% STAKE FOR 
AN 
INITIAL CASH CONTRIBUTION OF 2.5 MILLION US DOLLARS 
    * DIGITAL BROS - TERMS FOR SALE PROVIDE AN OPTION EXPIRING 
JUNE 
30, 2018 FOR REMAINING 87.5% FOR 17.5 MILLION US DOLLARS 
    * DIGITAL BROS - IF OPTION IS EXERCISED, AGREEMENT WILL 
HAVE 
EFFECT OF 12 MILLION EUR ON EXPECTED CONSOLIDATED NET PROFIT FOR 
FY CLOSING ON 30TH JUNE 2018 
    * AGREEMENT FOR DEVELOPMENT OF BLOODSTAINED HAS BEEN 
RENEGOTIATED 
    * RENEGOTIATION INCREASES TOTAL DEVELOPMENT INVESTMENT TO 
5.8 
MILLION US DOLLARS 
    *  RENEGOTIATION OF BLOODSTAINED SIGNIFICANTLY REDUCES 
ROYALTY 
PERCENTAGE PAYABLE BY GROUP AFTER LAUNCH OF VIDEOGAME 
    * BLOODSTAINED'S RELEASE HAS BEEN POSTPONED TO SPRING 2019 
    * BLOODSTAINED EXPECTED TO GENERATE LIFETIME REVENUES OF 30 
EUR 
MILLION 
    * EXPECT SLIGHT DECREASE IN NET FINANCIAL POSITION 
ALONGSIDE 
WHOLE 2018 BUT WILL RETURN TO GROWTH AFTER LAUNCH OF NEW 
VIDEOGAMES 
 
Source text for Eikon:  ID:nBIA3MLdCl  
Further company coverage:  DIB.MI  
 
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