On 21 December 2018, Aquis Entertainment Limited (ASX: AQS) announced its binding Implementation Deed with Blue Whale Entertainment Pty Ltd (âBlue Whaleâ). The agreement states that the Blue Whale will acquire the outstanding convertible loans of the company and 137.0 million of the companyâs share which is held by ACH.Â As the transaction proceeds towards completion, ACH will be transferring a total 137,004,377 shares of the company to the blue whale.Â Â
Also, against $2 million of the convertible loan of the company held by ACH, ACH will transfer the convertible loan of AQS to Blue Whale. The remaining convertible loan of the company will get converted to the company share at a conversion price of $0.20 per share subject to the cap value. With the execution of the transaction, the Blue whale will be replacing ACH shareholding in the company up to a maximum of 86.99% of Aquisâ share capital.
Blue Whale has given a put option to ACH where ACH can sell the remaining 26,867,497 shares to Blue whale with a maximum value of $4 million after three years. It means that each share will cost 14.9 cents which can be exercised on 01 February 2022.
The transaction holds specific terms and condition which requires approval from the independent shareholders of the company and the ACT gaming regulatory approvals.
Also, post completion of the transaction, the company holds right to use the Aquis trademark and brand for 12 months.
The official listing date of the company is 02 December 2011. Since then, the performance of the company remains negative. The five years performance of the company is -35.36%. The last one-year performance of the company is -35.56%.
For the half year 2018, ending on 30 June 2018, the companyâs revenue was down by 3.6% as compared to the previous corresponding period to $12,317,421. The company made a loss of $2,156,212. The balance sheet of the AQS is not healthy, as it has a deficiency in the net asset base. However, the company is in a state to meet the working capital requirements and clear its short-term debt as the company owns a total current asset of $6,235,997 and total current liabilities of $4,615,497. There is also a year on year increase in the accumulated losses which might create a negative impact on the shareholders of the company. There is a deficiency in the total shareholderâs equity worth $15,355,471.
By the end of the half year period, there was a decrease in the cash and cash equivalent. It resulted in the net cash and cash equivalent worth $4,615,170. By the end of the trading on 21 December 2018, the closing price of the share was A$0.029 with the market capitalization of $5.37 million.
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