Entraction Buying back 20% Of its Stock shares
9/30/09 – The warrants to 2 500 000 class B shares in gambling group Entraction are being sold by the Global Betting Exchange Group (GBE), the parent company of Betdaq back to the company for a price SEK21 per share (Euro 2.1) currently valued at around SEK 80 million.
Entraction will lay out a total SEK 23 million (Euro 2.25 million) if shareholders are in agreement at an extraordinary general meeting to be convened soon.
A company spokesman said that had GBE exercised the warrants it would have created a dilution in capital of 19.4 percent. Instead, Entraction would cancel the warrants on execution of the acquisition.
”We have enjoyed the support of the Global Betting Exchange Group in agreeing to Entraction acquiring the warrants at a price substantially lower than current trading price," Entraction chief executive Peter Åström said. "The exercise of the warrants would have incurred a large dilution at a low valuation, relative to the strong development Entraction has shown the past two years.“
He added that the purchase of the warrants will affect cashflow, but not financial results as the cost is made against equity.