Brief: Fragbite Sells Lucky Kat, Wagmi; Initiates Strategic Overview

Fragbite AB (publ)

02/06/2025 07:11

June 2 (Reuters) - Fragbite Group AB FRAGBI.ST:

SAID ON MAY 30 HAD SIGNED TWO AGREEMENTS TO SELL ALL ITS SHARES IN SUBSIDIARIES LUCKY KAT B.V. AND WAGMI LTD TO 4+VENTURES AB AND SWISS PEAK VENTURES GMBH

SALE FOR A COMBINED TOTAL PURCHASE CONSIDERATION OF SEK 1.94 MLN

LENDS PURCHASE CONSIDERATION TO THE BUYERS, LOANS WHICH MATURE IN 24 MONTHS

AS PART OF THE SALE, THE COMPANY WILL RECEIVE REVENUE SHARE FROM THE LUCKY KAT GAME PORTFOLIO OVER 30 MONTHS -- 40% OF GROSS SALES FROM EXISTING GAMES, 20% OF GROSS SALES FROM FUTURE WEB3 ADAPTATIONS OF THOSE GAMES

REASON FOR THE DIVESTMENT IS TO HALT NEGATIVE CASH FLOW FROM THE WEB3 BUSINESS AREA

FULL GOODWILL IMPAIRMENT FROM THE SALE OF LUCKY KAT TO POSITIVELY AFFECT BALANCE SHEET AND INCOME STATEMENT WITH SEK 43.0 MLN Q2

WILL REASSESS NEXT STEPS AS PART OF A GROUP-WIDE STRATEGIC OVERVIEW

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 (Gdansk Newsroom)

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