Gfinity disposes of remaining stake in Athlos Game Technologies

Gfinity said on Monday that Athlos, originally created as an extension to its online platform, cost it approximately £2.0m per year to operate, which became "unsustainable".

Following restructuring and refocussing efforts, Gfinity sold 72.5% of Athlos to Tourbillon Group back in June, with liabilities associated with Athlos being assumed by Tourbillon.

Since the initial disposal, Tourbillon has restructured Athlos, but with the unit still remaining "substantially loss-making" and requiring ongoing funding from its shareholders, Gfinity decided it was unable to fund any further investment into a legacy business. Gfinity estimates that its share of the ongoing funding commitment was likely to amount to in excess of £25,000 per month for the next year.

"Accordingly, as Gfinity is both unwilling and unable to recommence funding Athlos from December, the Board has agreed to sell Gfinity's remaining 27.5% interest in Athlos to Tourbillon for an immediate payment of £260,000 in cash," said Gfinity.

"The cash consideration, which will be used for investment in development of Gfinity's digital media business and general working capital purposes, significantly improves Gfinity's financial position and establishes a stronger base to implement its new plans and reach a turnaround position. Following the disposal, Gfinity will have no further interest in or commitment to Athlos."

As of 1045 GMT, Gfinity shares had sunk 10.34% to 0.065p.

Reporting by Iain Gilbert at Sharecast.com