Kings Entertainment has agreed a settlement with Sports Venture Holdings (SVH) over the termination of its proposed merger, and is now looking to expand operations in the global lottery sector.
This latest development comes after news emerged last month that the business combination between Kings and SVH was on the rocks due to the noncompliance of the latter.
Subsequently, Kings was said to be ‘considering all options with respect to the enforcement of the Business Combination Agreement, the loan and its other rights’ and, weeks later, the matter now appears to be resolved.
For its troubles, the Vancouver-based firm will be repaid the full amount of the $2.5m advance it paid to SVH when entering the transaction agreement last May, while SVH has also agreed to reimburse Kings for $1.75m of its costs and expenses incurred in connection with the proposed merger.
After announcing the termination of the proposed business combination with SVH, Kings further shared that it is ‘now positioning its operations for expansion in the burgeoning global lottery sector’, following consistent growth and a surge in jackpots.
“The global lottery market has made a huge comeback this year and we’ve positioned ourselves well to take advantage of this renewed interest,” explained Steve Budin, CEO of Kings.
“We’ve built a strong foundation for growth, by cutting costs throughout our operations, and will now leverage the strong presence we’ve built to accelerate our growth globally, both organically, and if the right opportunity comes up, through complementary acquisitions.”
Aiming for profitability by the end of 2023, Kings affirms its cash position is ‘even stronger’ than prior to the proposed merger with SVH, and the firm is now exploring entry into the emerging AI market.