Devilfish Poker, the site bearing the name of poker legend David “Devilfish” Ulliott, is to be sold by for £1 by its current owners The Weather Lottery.
In a statement to the London Stock Exchange, The Weather Lottery said:
The Board has agreed to sell Devil Fish to Jeff Williams, the former managing director of the Group’s On-Line Gambling subsidiaries. Mr Williams will pay £1, with Devil Fish also assuming responsibility for items which would otherwise have resulted in a circa £60,000 charge to the Group’s Statement of Comprehensive Income during the financial year to 31 July 2013. In addition, Mr Williams will terminate his consultancy agreement (as announced 24 May 2013) with the Group with immediate effect. The disposal will result in a write down of circa £300,000 in the book value of Devil Fish in the year to 31 July 2013, but in combination with the ceasing of Mr Williams’ consultancy contract, will produce a positive contribution of circa £100,000 for the current financial year. The transaction is expected to complete next week.
The disposal constitutes a related party transaction under the AIM Rules, as Mr Williams was a director of certain subsidiaries of TWL and a substantial shareholder during the past 12 months. The Board consider, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the sale of Devil Fish to Mr Williams are fair and reasonable insofar as Shareholders are concerned.
A then unnamed party bought Devilfish Poker in November 2010 for a fee of £330,000 made up of £40,000 cash and £290,000 in share. That party turned out to be The Weather Lottery, who like Devilfish Poker have not made a profit in the past five years.
When Devilfish Poker first launched, it did so on the now defunct Excapsa Network (Cereus) before switching to the Entraction Network (also now defunct). The site now called the Play2B Network home, a network that according to PokerScout.com only sees 200 cash game players during peak hours and average of 90 cash game players competing on average during any given week.