Gaming software group Nektan is bringing in an administrator as the company has run out of cash. Shareholders have watched their investment in the company decline 99% over the past five years.
The administration process is being undertaken in Gibraltar and Nektan has been forced to temporarily suspend trading of their shares on the London Stock Exchange. Back in June 2015 shares in the company traded at £175 each. Those same shares were now worth £0.85 each at the suspension of trading. Nektan has failed to secure funding to provide capital, likely due to poor business habits. Most of Nektan's clients are white label casinos that offer poor bonus terms, tiny withdrawal limits, and slow payouts to customers and are known as being less-than-ideal spots to play.
In their most recent annual report, Nektan reported a loss of £6.4 million before taxes. The company has been working to reduce losses, but it appears that their moves may not be enough for the long-term health of the company.
We're keeping an eye on this story and will be updating readers as the process plays out.