Kin Group Plc (LON:KIN) has confirmed plans to become a video game-focused software company after the cash shell unveiled the £6.8mln reverse takeover of bidstack Ltd.
Shares in Kin Group have been suspended from trading on AIM at 3.15p each since February when the company – which previously was a health and fitness app developer - first said it was in talks over a reverse takeover of a software group.
READ: Kin Group to buy digital advertising software company, bidstack
The new company will be renamed bidstack Group PLC and is expected to resume on AIM on September 19.
The acquisition consideration will be satisfied by the issue of shares to the sellers and other bidstack shareholders.
On 5 June 2018, Kin announced that it had invested £400,000 by way of the Convertible Loan Note in bidstack and that it was in discussions which might lead to the acquisition of the entire issued share capital.
Kin Group also announced on Friday that it has raised £3.5mln through a placing of 58.3mln shares at a price of 6.0p each by Peterhouse Capital to provide working capital to finance the growth of the new group.
In addition, the firm added, some bidstack shareholders have agreed to sell 12.8mln shares via a vendor placing at the same price raising £770,000.
bidstack provides technology that inserts adverts into natural advertising spaces within video games, which cannot be excluded with ad-blocking software.
Its client list includes Sports Interactive, which develops the Football Manager series, as well as brands such as Domino's Pizza PLC (LON:DOM) and Vodafone PLC (LON:VOD).
Kin Group chairman Donald Stewart, commented: "I am delighted to announce the proposed acquisition of bidstack and an associated placing.
“The placing was over-subscribed, which enabled us to raise additional funds for the company and also facilitate the sale of shares on behalf of certain Bidstack shareholders."