Sweden's Gaming Corps has written down the opening value of its acquired slots developer Salsa Games to zero, after its parent company failed to prove its value.
Salsa Games had been acquired in 2017 for SEK7m (£571k), but while undertaking a review Gaming Corps stated that it has been unable to gain access to relevant documentation or to communicate with key personnel.
Gaming Corps CEO Juha Kauppinen said: “Given what was previously communicated, we know that the market had large expectations of Salsa Games. I believe that our shareholders have every reason to have expectations of Gaming Corps’ investment in the business area, but the investment has no benefit for a product brand apparently without content.
“The review is not complete, so we must return regarding the value of Salsa Games how we intend to manage the subsidiary when the history is rectified. But the knowledge we have accumulated so far, combined with the auditors' views, is sufficient reason for the management to pull the brake. We therefore want to inform the market Salsa Games will not be used as a trademark for the company's igaming business. The casino slots that are in production will instead be marketed under Gaming Corps brand.”
John Chasoulidis, who was hired as game director in charge of Salsa Games’ casino business, has been hired as director of igaming at Gaming Corps after “desperately trying” to drive the business ahead. He has a responsibility for focusing on slots, with a first round of games expected to reach the market before the end of July.
