XLMedia has announced a proposed return of £11m in corporate capital to shareholders ahead of the company suspending trading.
The company confirmed on 3 April that it has begun work on fulfilling final obligations and settling liabilities with investors. At present, XLMedia exists as a “cash-shell business” with no material trading operations.
As part of the proposed return, XLMedia intends to repurchase up to 100 million ordinary shares at a fixed price of 11 pence per share, with shareholders able to reclaim approximately 71% of XLMedia’s outstanding shareholding.
The 11 pence fee represents a 16% premium on XLMedia’s common pricing for ordinary shares and is subject to shareholder approval at a general meeting scheduled for 28 April.
XLMedia has made its offer as the board “does not expect to make any further distributions of capital to Shareholders prior to the planned suspension of the Company’s Ordinary Shares on AIM”.
In February, shareholders accepted XLMedia’s first return of capital of £14m following the sale of its European and Canadian media assets to Gambling.com Group for a $30m cash payment. This was followed by the sale of its North American media unit to Sportradar AG for a $20m cash reward.
XLMedia has informed the London AIM that it will delist and close its operations on 12 May 2025.
Uncertain affiliate future
The sports and gaming affiliate marketing company is shutting down its business following a strategic review prompted by ongoing operational challenges facing the affiliate sector. Over the past few years, the company has experienced declining profitability and increasing competition.
The wider sector has also been hit with increased uncertainty, as affiliates prepare for the potential impact of changes to Google’s gambling and gaming ad policy.
Advertisers will now be required to provide additional documentation to prove they are authorised to operate in the regions where their ads are displayed, with documentation including valid licences and the clear display of responsible gambling messaging.
Forming part of a raft of recent tweaks to its advertising policies, this latest move from the search engine seeks to clarify its stance on ‘gambling’ and ‘gambling-promoting content’.
