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Majesco Entertainment Company Announces Establishment of Venture for Online Casino Gaming and Social Casino Gaming
Venture to Acquire Operations of Orid Media LTD and Pariplay LTD
Completes Registered Direct Offering of $2.0 million
EDISON, N.J., August 6, 2013 /Marketwire/ -- Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of video games for the mass market, has entered into an agreement to establish GMS Entertainment Limited for the purpose of pursuing an online casino games strategy. As part of the transaction, Majesco will invest a total of $3.5 to $4.5 million, depending on GMS’ future financial performance, to acquire a 50% interest in GMS. Jesse Sutton, CEO of Majesco Entertainment, will serve as the Chairman of GMS Entertainment.
GMS Entertainment has agreed to acquire the operations and certain assets and liabilities of Orid Media Limited and Pariplay Limited, subject to obtaining certain regulatory approvals. Orid Media designs and develops both fixed odd and random based online and mobile games for use in real money online games, social casinos and lottery systems. Pariplay is a licensed online gambling operator headquartered in the Isle of Man, operating online gaming sites on an owned and white label basis. The founder of Orid and Pariplay will maintain a 50% interest in GMS.
The Company also completed a registered direct offering selling 3.3 million shares of common stock to a new investor, Yair Goldfinger, at a price of $0.60 per share. Yair Goldfinger, an angel investor in Orid and Pariplay, is currently Co-Founder and CEO at AppCard.
Previously, Mr. Goldfinger co-founded ICQ, the world's first internet-wide instant messaging service, which was acquired by AOL in 1998. In 2001 Goldfinger co-founded Dotomi, a personalized display media technology company, which was acquired by ValueClick in 2011.
“I am incredibly excited about this opportunity in the fast growing online gaming market and partnering with these talented individuals,” said Jesse Sutton, CEO of Majesco Entertainment. “During this transition year in console gaming, we have been actively exploring emerging growth opportunities in the social and online casino gaming industry to supplement our existing business. Entering the market through this partnership allows us to participate in a rapidly growing market segment and position the company for longer term growth as more jurisdictions move to legalize real money online gaming. The complimentary skills and abilities of all involved are expected to result in a successful venture.”
About Majesco Entertainment Company
Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the company is focused on developing and publishing a wide range of casual and family oriented video games on all leading console and handheld platforms as well as mobile devices. Product highlights include Zumba® Fitness and Cooking Mama™. Majesco is headquartered in Edison, NJ and the company's shares are traded on the Nasdaq Stock Market under the symbol: COOL. More info can be found online at majescoent.com or on Twitter at twitter.com/majesco.