LONDON (ShareCast) - (Sharecast News) - Seed Innovations announced the completion of the sale of its portfolio company Fralis, also known as Leap Gaming, to IMG Arena US on Tuesday.

The AIM-traded firm said the sale, which it first announced in December, was for an enterprise value of €14m (£12.29m).

Following the transaction, Leap Gaming was now wholly owned by IMG Arena US.

Under the terms of the sale, Seed Innovations was set to receive proceeds of €2.8m, being 50% of the sale proceeds due to the company, after adjustment for working capital and the repayment of debt.

In addition, the firm would also receive €0.27m, which would cover the repayment of its €0.25m term loan, as well as accrued interest.

The second tranche of the sale proceeds, which was expected to be €2.8m, would be received in April next year.

Seed said that would be calculated as the remaining 50% of the sale proceeds, subject only to any claims under customary warranties and indemnities, in accordance with the terms of the sale and purchase agreement.

The board said it intended to use the proceeds received from the sale of Fralis to make further investments in accordance with its investing policy.

"I am pleased to be able to confirm to shareholders that the sale of Leap to IMG Arena has been declared unconditional and has concluded in line with the anticipated timelines," said chief executive officer Ed McDermott.

"The initial cash proceeds, and the balance paid on the 12-month anniversary of completion, provides us with liquidity at a time where we are seeing some very promising investment opportunities.

"We strongly believe that our portfolio has the potential to create short, medium- and long-term value creation."

At 1206 BST, shares in Seed Innovations were down 0.73% at 2.04p.

Reporting by Josh White for Sharecast.com.

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