After closing down the division in June, Gfinity PLC (AIM:GFIN) has officially disposed of the remaining assets of its former esports solutions operations.
Gfinity initially explored a profit-sharing agreement with a US esports business after closing its Gfinity Arena in Fulham, but “limited profitable growth opportunities” have led the group to focus solely on its media division.
Newly formed company Ingenuity Loop Limited has agreed to buy the remaining esports business and assets for an upfront payment of £15,000 and a 15% equity interest in the buy.
Ingenuity Loop has the option to buy back this 15% stake for £200,000 in cash in the 12 months post-acquisition.
Neville Upton, non-executive chairman of Gfinity, has agreed to join Ingenuity Loop as chief executive without a salary until Ingenuity Loop becomes profitable.
In return, Upton will have an equity interest of approximately 41.65% in Ingenuity Loop.
Ingenuity Loop will have the licence to trade as ‘Gfinity Esports Solutions’ for up to four years, but is not permitted to make any public announcements using the name.
Gfinity is not expected to report any revenues from its former esports solutions division in the financial year ending 30 June 2024.