GLOBAL GAMING NETWRK (OTCMKTS:GBGM) has announced that it has finally reached a definitive merger agreement with Innovativ Media Group Inc. The transaction is set to come into effect within the next two weeks. Additionally, the company has been trying to restructure its debt and has paid and retired convertible debt notes held by Carebourn Capital. Although these were the only debt notes issued by the company, it states that it will continue to look forward to funding opportunities to meet its goals.
As per the merger agreement, GBGM will pay restricted and preferred common shares, worth $4 million, in return for all of Innovativ’s stock and assets. The acquisition would be followed by a change in management, with Tom Coleman becoming the CEO, replacing Stephen Kern. The outgoing CEO stated that he was happy to let the handling of operations go into the capable hands of Mr. Coleman. He also hinted that the move would provide the company with near-term growth and produce great results.
The new company is going to be named Innovativ Media Group, Inc and the new CEO believes that the move would help the company enhance shareholder value. GBGM has quickly settled its previous debt, so it can focus its resources on the acquisition, without looking towards severe dilution. The company stated that the acquisition will help it gain access to experienced and qualified management teams, assets and an entry into the digital entertainment industry.
However, the recent changes do not mean that the company would stop pursuing its interests in the licensing fantasy games to casinos, sports bars and restaurants. GBGM has, however, not been consistent with its financial filings. The company’s last report was for the 1Q2014, which showed $46,000 in cash, no revenues and a quarterly net loss of $31,000. Needless to say, the investors have been keeping away from the stock, resulting in a very minor shareholder value.
GLOBAL GAMING NETWRK (OTCMKTS:GBGM) finished the June 24 session with a 100% increase to its share value, reaching a close at $0.0004, after trading 394.58 million shares.