The clock has been ticking for Kin as it needs to complete a reverse takeover (RTO) by the end of August to maintain its listing on AIM; today's stock market statement said the company expects the reverse takeover of bidstack will be completed by 31 August 2018.
Kin intends to acquire the entire issued share capital of bidstack through issuing new Kin shares to the current owners; it also expects to raise further working capital for the enlarged group by way of a placing of new ordinary shares to institutional and other investors as part of the transaction.
The group had previously indicated it intended to direct its fire-power at the software sector and the proposed acquisition of bidstack fits right in with that strategy as bidstack's stock-in-trade is to place programmatic advertising campaigns directly into video games.
Advertisements can appear in real time and are native to the game, appearing where players would expect to see such advertising in comparable real-world environments, such as advertising hoardings in a virtual stadium.
The technology allows targeted advertising so that, for instance, two gamers playing the same game at the same time could experience different advertisements based on criteria determined by brand campaigns.
Somehow I love this. https://t.co/WU2Y0mVkdf— Michael Nevins (@mnevins) June 4, 2018
Bidstack currently has exclusive rights to place direct digital advertising into six games, including Football Manager 2018, Cricket Captain, and Sociable Soccer.
Donald Stewart, the chairman of Kin, believes the acquisition will be transformational for Kin's shareholders.
“We believe that bidstack is currently the only media owner in the native in-game, programmatic digital advertising arena. Leveraging bidstack's technology we believe we can provide additional sources of revenue for games producers and publishers which will become increasingly valuable in an environment in which digital games are subject to significant sales price pressure," Stewart said.
James Draper, the chief executive of bidstack, said the software company's team was looking forward to the completion of the reverse takeover to drive the business forwards to the next stage of its growth.
“By obtaining a quotation on the AIM market we believe the RTO will be a great result for our current shareholders, who have supported us over the last three years and will provide us with a firm foundation for continued growth and winning more commercial contracts with the leading publishers and advertising agencies. We are excited to be kicking off our platform just in time for the FIFA World Cup and looking forward to the prospect of delivering on our ambitious business plans," Draper said.
Shares in Kin Group will remain suspended until the reverse takeover is completed.