Mighty Kingdom hits record low after game developer clarifies on Google contract

Fortifai

31/05/2022 03:42

(Updates)
    ** Shares of video game developer Mighty Kingdom  MKL.AX 
drop ~11% to a record low of A$0.062 
    ** Co clarifies https://www.asx.com.au/asxpdf/20220531/pdf/459gxf635pz874.pdf
 on contract with Google LLC for technology partnership,
announced last week https://www.asx.com.au/asxpdf/20220527/pdf/459cvg5yz7l596.pdf
    ** Says whilst the contract itself is material, the revenue
under the contract term is not material in comparison to co's
market capitalisation
    ** MKL, on May 27, had said "the collaboration is material
to MK from a revenue perspective and will be reflected in
financial results moving forward"
    ** Shares of co was halted by ASX post last week
announcement, pending additional information around the contract
    ** MKL stock had jumped over 12% on May 27
    ** Shares have fallen ~60% this year 
    ** Australia's tech stock index  .AXIJ  also falls 1.1% and
is the biggest pct loser on the benchmark < AXJO 

 (Reporting by Indranil Sarkar in Bengaluru)
 ((Indranil.Sarkar@thomsonreuters.com;))