Canadian specialty finance firm Difference Capital Financial (DCF) has sold its majority interest in WG Ltd, which operates as WorldGaming, a Toronto-based online gaming platform that facilitates tournaments, leagues and gaming ladders for the competitive gaming community. The buyer was Cineplex Inc (TSX: CGX), which is investing US$10 million to obtain an 80 percent stake in WorldGaming. Cineplex will invest an additional US$5 million to expand the business, DCF said. DCF, which will retain a small equity stake in the company, expects to receive $6.4 million from the deal.
Difference Capital Sells WorldGaming to Cineplex Entertainment
TORONTO, CANADA – September 17, 2015 – Difference Capital Financial Inc. (“DCF” or the “Company”) (TSX:DCF)(TSX:DCF.DB) announces today that its majority-owned investment, WG Ltd. (operating as “WorldGaming”, and formerly as “Virgin Gaming”), a leading online gaming platform that facilitates tournaments, leagues and gaming ladders for the competitive gaming community, has sold its operational assets to Cineplex Entertainment (“Cineplex”). As part of the deal, Cineplex will invest US$10 million to acquire the assets in exchange for 80% ownership of the new company, as well as invest an additional US$5 million to expand the business model.
DCF expects to receive approximately C$6.4 million from the transaction. In addition, DCF will continue to hold a small indirect equity interest in the new company going forward.
About Difference Capital Financial Inc.
Difference Capital Financial Inc. invests in and advises growth companies. We leverage our capital market expertise to help unlock the value in technology, media and healthcare companies as they approach important milestones in their business lifecycle. Difference Capital Financial Inc.’s common shares and convertible debentures are traded on the Toronto Stock Exchange under the symbols “DCF” and “DCF.DB”, respectively.
Caution Regarding Forward-Looking Statements
Included in this press release are matters that constitute “forward-looking” information. Such forward-looking include statements regarding future financial results of the Company, potential liquidity events of portfolio investment assets and the ability to recover on secured debt positions. Forward-looking statements may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, equity market regulatory risks, risk inherent in foreign operations and competition. These factors are largely outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. The Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Chief Executive Officer
Photo courtesy of WorldGaming