Contagious Gaming offloads Digitote

Toronto-listed software supplier Contagious Gaming has offloaded financial commitments related to its acquisition of Digitote around a year ago as it restructures European operations.

The company has executed a Share Purchase Annulment among Digitote Limited (Isle of Man) , Digitote Software GmbH Deutschland, Gabriele Knicker, Guenter Boyks and the Company.

Contagious revealed Digitote’s loss of a major customer had resulted in the company funding a monthly cash burn of around $150,000 which the restructuring would eliminate along with a loan liability of approximately $700,000 for Digitote financing provided by Knicker and Boyks and the Company’s Contingent Consideration liability of approximately $2,110,000.

The move provides the Company with an option for another sports betting software license to enter other markets, a press statement reads.

“Restructuring eliminates Contagious Gaming’s need to fund Digitote’s monthly cash burn while at the same time, enables us to launch our UK online gaming platform CNSBet on a royalty-free basis,” Peter Glancy, chief executive officer and director of Contagious Gaming, said.

In addition, the parties have agreed Digitote Limited will provide Contagious Gaming a worldwide user licence for the Digitote Xturf backend and frontend for desktop and mobile; a desktop and mobile version of SoccerSlot (a.k.a. Multiline); an option to acquire a second worldwide license for the Digitote Xturf backend and frontend for desktop and mobile; Digitote’s transfer of relevant domains to Contagious Gaming; and, up to one hundred and twenty hours of free support from Digitote to Contagious.

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