Following a dismal first half in which Parlay Entertainment saw a 26 percent decline in revenues to $1.2m for the half year ended June 30th, with a net loss of $1.7m during the period, down 58 percent year-on-year, the online bingo platform provider has completed the sale of a majority of the company’s assets to M Projects Assets S.A.
M Projects Assets S.A. was previously the lending party to a credit agreement with Parlay in which the company borrowed an aggregate amount of up to $500,000 from M Projects Assets S.A.
Thanks to a court ruling, the take over of Parlay by Projects shouldn’t be as drastic for many Parlay employees. The court agreement made in June provided that Projects offer employment to all employees of Parlay on closing and that the company will assume all statutory termination and severance obligations of Parlay for these employees.
Projects has advised the company that it will operate, invest in and grow Parlay’s business under the business names Parlay Games and Parlay Entertainment.
Following the closing of the transaction, Parlay intends to proceed with a liquidation proposal.
Parlay in a statement,“As part of the liquidation proposal, the company is reviewing opportunities for the public vehicle, which will either take the form of an outright sale, reverse merger or wind-up.”
Parlay added that it intends to apply for a partial revocation of the cease trade order previously issued by the Toronto Stock Exchange.