Macau (MNA) – Amax International Holdings Ltd will sell its mobile games application business to Cambodian casino operator Galaxy World Co., Ltd for a consideration of HK$30 million (US$3.8 million), according to the company’s note on Hong Kong Stock Exchange (HKEX).
The sale involves 30 offline mobile game apps’ source codes with the purchaser to pay in of cash within 8 business days, while the Amax group will not record any gain or loss on disposal of this selling.
Amax stated that after reviewing the performance of the group’s existing business segments, it considered focussing more resources on its gaming business and IT solutions to clients and mobile users.
The group believed that the trade will strengthen its cash position to meet the cash flow requirement under the settlement deed dated 29 December 2017, since it had agreed to pay HK$85.5 million for settling the cancelation of wrongly issued Promissory Notes.
The net cash proceeds from the sale after deducting the estimated expenses in will amount to approximately HK$29.5 million which was said to be allocated for investment opportunities in Hong Kong and the Asia Pacific in respect of the gaming and IT industries.
The money will also possibly be used for the repayment of other borrowings and promissory notes and for general working capital for the group’s existing businesses
Amax’s main businesses at the moment involves operating gaming businesses in Vanuatu and a VIP room in Cambodia, with the company previously operating the Greek Mythology casino at the Beijing Imperial Palace Hotel.