Asian gaming investor Amax International Holdings Ltd has agreed to sell its Mobile Games Apps business to Cambodian casino operator Galaxy World Co., Ltd in order to improve cash flow.
Amax will sell the Mobile Games Apps – including the source codes of 30 offline mobile game apps covering the areas of leisure and entertainment, education and intellectual, sport, and adventures – for a total consideration of HK$30 million with the group stating it does not expect to record any gain or loss on the disposal.
Explaining the reasons for the transaction, Amax said, “After reviewing business performance of the Group’s existing business segments, the company considered focusing more resources on the Group’s gaming businesses and IT Solutions Business.
“On the other hand, the Group is sourcing funds to proceed with the cash flow requirement under the settlement deed dated 29 December 2017 (Amax agreed to pay a HK$85.5 million settlement to two parties for the cancelation of wrongly issued Promissory Notes).
“Therefore, the company is of the view that the disposal will strengthen the Group’s cash position to (i) meet the cash flow requirement under the settlement deed when materialized; (ii) retain resources to develop the Group’s gaming businesses and IT Solutions Business; and (iii) for general working capital to maintain daily operation of the Group.”
Amax, which once operated Greek Mythology casino in Macau, recently wrote off its 24.8% stake – valued at HK$353 million (US$45 million) – in the shuttered casino.
The company currently operates 13 VIP baccarat tables at a casino in Poipet, Cambodia, and is providing pre-opening services for a new casino project in Sihanoukville. It also holds an interactive gaming license in Vanuatu.