Maximum Entertainment divests certain assets in its subsidiary Merge Games
Stockholm, Sweden (December 23, 2024) - Maximum Entertainment AB (Nasdaq: MAXENT B) has today entered into an asset sale agreement to divest a number of intellectual property rights to catalog titles and existing stock of retail products to Silver Lining interactive Ltd, a UK company owned by the founders of Merge Games and their family members.
"This agreement is a significant step in balancing Maximum Entertainment’s financial position and clearing our liabilities," said Philippe Cohen, CEO of Maximum Entertainment. "Recently established by Merge's founders, Silver Lining Interactive is the ideal partner for this sale. The deal puts these divested IPs into good hands and sets them up for success, while allowing Maximum Entertainment to focus resources on flagship titles that we are confident will drive value into 2025 and beyond."
Transaction key components
The divestment includes:
- Merge Games interests, including intellectual property rights to approximately 90 titles from the Merge Games catalog, including Spirit of the North.
- All rights to key titles Smalland: Survive the Wilds, Bramble: The Mountain King, Pixelshire, Morbid: The Lords of Ire and Sunnyside remain with Maximum Entertainment.
- Stock items to a resale value of EUR 430,000.
- Office lease agreement, as well as existing IT and office equipment.
Financial impact
- Maximum Entertainment will receive a consideration of EUR 1,000,000, payable at completion.
- An additional stock royalty estimated at EUR 135,000, payable over six (6) months from completion.
- The owners of the buyer, Luke and Joanne Keighran will release Maximum Entertainment of any remaining claims and/or earn-out entitlements under the Share Sale and Purchase Agreement for Merge Games, Ltd amounting to an estimated total value of a EUR 2,330,000 and from other liabilities to an estimated value of EUR 500,000.
- Total direct value equivalent of EUR 4,000,000.
- Signing and closing of the transaction has taken place on 23 December, 2024.