REG - Blue Star Capital - Dynasty Gaming and Media Merger

Blue Star CapitalAnnouncement

13/03/2024 07:15

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RNS Number : 6640G  Blue Star Capital plc  13 March 2024

13 March 2024

Blue Star Capital plc

 

("Blue Star" or the "Company")

 

Dynasty Gaming and Media Merger with Googly Media Holdings

 

Blue Star Capital plc (AIM: BLU), the investing company with a focus on
esports, payments, technology and its applications within media and gaming
provides the following update on its investee company Dynasty Gaming &
Media Pte Ltd ("Dynasty").

 

Further to the announcement on 27 November 2023, the Company was notified on
12 March 2024  by Dynasty, following resolutions being passed by shareholders
on 12 March 2024, that Dynasty has entered into an agreement to acquire the
entire assets and business of Googly Media Holdings Pte Ltd for purchase
consideration of approximately US$7.6 million in an all-share acquisition that
values the combined entity at USD$15m ("the Acquisition"). Further, Dynasty
has advised that The Acquisition is effective from 29 February 2024 and is
expected to conclude before 30 April 2024. In addition, the Company has also
been informed that a number of convertible loan Note holders in Dynasty also
intend to convert post the Acquisition and the Company has decided that it
will also convert its $75,000 convertible loan at that point.

 

Based on combined entity valuation, upon completion of the Acquisition and the
conversion of the convertible loan notes, the Company's 13 per cent.
shareholding in Dynasty together with its 0.6 per cent shareholding in Googly
will be valued at approximately £450,000.  The Company had been carrying the
investments in Dynasty and Googly on the basis of their last completed fund
raisings at a combined valuation of approximately £5.45m.

 

The Company will provide further details to the market on the status of the
Acquisition once further information is available.

 

Tony Fabrizi, Executive Chairman of Blue Star Capital said, "We are obviously
very disappointed by the significant decline in carrying value for our
investment in Dynasty. Unfortunately, market conditions in the esports sector
have been particularly challenging over the last year and whilst the
opportunity for the merged business looks exciting, outside investors have
ultimately proved difficult to convert. We understand that the merged business
remains on track to be cashflow positive later this year and will continue to
provide support to Dynasty's management wherever possible".

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

For further information, please contact:

 

 Blue Star Capital plc         +44 (0) 777 178 2434
 Tony Fabrizi

 Cairn Financial Advisers LLP  +44 (0) 20 7213 0880
 (Nominated Adviser)
 Jo Turner / Liam Murray

 Axis Capital Markets Limited  +44 (0) 20 3026 0449
 (Sole Broker)
 Ben Tadd / Lewis Jones

 

About Blue Star

Blue Star is an investing company with a focus on new technologies. Blue
Star's investments include SatoshiPay Limited, an incubator and service
provider to de-fi businesses using blockchain technology; Dynasty Gaming &
Media Pte. Ltd., whose B2B white label platform is a full-stack gaming
ecosystem; and Sthaler Limited, an identity and payments technology business
which enables a consumer to identify themselves and pay using just their
finger.

Forward looking statement disclaimer

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions shareholders and prospective
shareholder holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the date of this
announcement. The forward-looking statements made in this announcement relate
only to events as of the date on which the statements are made. The Company
will not undertake any obligation to release publicly any revisions or updates
to these forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement except as
required by law or by any appropriate regulatory authority.

 

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