Planetwide Games, the North American distributor of RYL Online
and creator of the recently announced Bluetorch MOX
extreme sports MMO, has announced the signature of a letter of intent to merge with SP Holding Corporation. After the merger, Planetwide will be the controlling company with 95% of the company stock, compared to 5% owned by SP.
The move seems to have been transacted in order to get Planetwide listed publicly on the stock market and possibly funding continuing growth; as Planetwide CEO Marvin Winkler said, "Planetwide Games is pleased to join with SP Holding Corporation, which will establish Planetwide as a publicly traded company with a strong core shareholder base. Planetwide Games has made significant progress during the past year and we are confident that a public listing will increase our visibility with current and potential partners and better position Planetwide Games to fund and implement its growth plan."
The transaction is not yet finalized, pending a definitive agreement between the two companies. Once the deal does go through, both companies will be debt-free and Planetwide, which also recently signed a deal to create a line of video games based on the dirt track racing series including the World of Outlaws Sprint Series
, will have roughly $5 million in cash on hand.