LONDON, UK: Gfinity plc (AIM:GFIN) has today disposed of its remaining 27.5 per cent interest in Athlos Game Technologies Limited, its former proprietary esports technology business, to Tourbillon Group UK Limited.
Athlos was originally created by Gfinity as an extension to its online platform and was used by the Esports Solutions Division, to deliver online esports tournaments.
However, the Athlos division cost Gfinity approximately £2m per year to operate which became unsustainable, given Gfinity’s low share price and poor market conditions.
As previously announced in June 2023, following a restructuring and refocus on digital media and its significant position in the Gamer website industry, the Company sold 72.5% of Athlos to Tourbillon Group UK Limited.
Liabilities associated with Athlos were assumed by Tourbillon, with the buyer also providing initial working capital to support the business. Gfinity retained a 27.5% shareholding in Athlos and the consideration payable to Gfinity by Tourbillon was £1.
Since the disposal, Tourbillon has restructured Athlos, but the Athlos business still remains substantially loss making and requires ongoing funding from its shareholders, including Gfinity from December. The Board of Gfinity estimate that its share of the ongoing funding commitment is likely to amount to in excess of £25,000 per month for the next year.
Following the restructuring earlier this year, Gfinity is focusing its resources on its continuing digital media interests and accordingly, Gfinity is unable fund any further investment into a legacy business such as Athlos, even if the Board believed that the potential long-term prospects for Athlos were positive.
Accordingly, as Gfinity is both unwilling and unable to recommence funding Athlos from December, the Board has agreed to sell Gfinity’s remaining 27.5 per cent interest in Athlos to Tourbillon for an immediate payment of £260,000 in cash.
The cash consideration, which will be used for investment in development of Gfinity’s digital media business and general working capital purposes, significantly improves Gfinity’s financial position and establishes a stronger base to implement its new plans and reach a turnaround position. Following the disposal, Gfinity will have no further interest in or commitment to Athlos.