Leading global gaming platform Nektan has had its share trading removed from the Alternative Investment Market of the London Stock Exchange.
The move comes after the flailing B2B supplier of white label casino and gaming platform content failed to nominate a new advisor, leading to the removal of its listing on the AIM.
Administrators Brought into Nektan Again
Previously, back on April 15 of this year, Gibraltar’s Supreme Court moved to appoint Ian Defty of CVR Global along with Steven de Lara of Signature Litigation as the joint administrators of the struggling company. At the same time, Shore Capital and Corporate resigned as the nominated advisor to the firm, something that needs to be in place according to AIM rules.
At that time Nektan’s joint broker was Shore Capital Stockbrokers, who resigned, leading to the trading of Nektan’s shares being temporarily suspended given that it had announced an intention to appoint administrators by April 14.
However, under the Alternative Investment Market Rule 1, company’s securities are removed from the exchange if a new advisor is not nominated with a month with Nektan now saying it had no intention of appointing a replacement to Shore Capital and Corporate which has led to the current situation.
Nektan was already forced to appoint administrators once this year and have had to now do so again having failed in its bid to raise the necessary funds needed to continue as a going concern.
Back in January Julie Swan and Mark Phillips of PCR London were appointed as joint administrators of the business, specifically the B2C division of Nektan Gibraltar, by court order. Swan and Phillips then sold off the B2C division to a subsidiary of Active Win Media, Grace Media, for a total of £200,000.
Nektan Trading Suspended Once Already
Nektan had already suffered the blow of its share trading being suspended once already this year, in January, when it failed to publish accounts for the year ending June 30 which was the deadline set by the exchange.
Trading did resume on January 27 after results were belatedly published, though they revealed a year-on-year loss of £9.2million which was 31.4% worse than the previous accounting year.
While results did go on to improve from the six months after that date to December 31 last year, affected by a £157,000 gain coming from discounted operations meaning a net six-month loss of just £2.8million, it has not helped the situation overall.
A global platform and services provider for the online casino sector, Nektan delivers international B2B gaming software and white label services around the world and was founded in 2014.
The international organisation is headquartered in Gibraltar and, as mentioned, is listed on the AIM section of the London Stock Exchange. Additional offices can be found in mainland UK, India and the United States.
While regarding themselves as a flexible, easy to work with business who are proud to be at the forefront of social responsibility with a focus on newly regulated markets, Nektan’s time could be coming to an end very soon only six years after having been founded.
While their own internal struggles continue, they are played out against the backdrop of the global coronavirus pandemic which, while leading to an upsurge in profits for online casinos, does very little to encourage new business for platform providers leading to it being unlikely they’ll find a sudden cash injection.