SouthPeak Interactive LLC and Global Services Partners Acquisition Corp. (OTCBB: GSPA) today announced they have reached an agreement in which SouthPeak’s shareholders will acquire a majority of the common stock of GSPAC, giving SouthPeak access to the public markets.
As of April 10, 2008, there was $5.36 per share in trust. The companies anticipated that related institutional financing and business consolidation will take place in May 2008, which will value SouthPeak at $35 million and result in the anticipated issuance of 35 million shares to the shareholders.
“These transactions will bring SouthPeak public at an opportune moment in the video game industry. We are delighted by investor support we have been receiving for our unique operating model that leverages an expanding universe of game developers to maximize profits and creative potential,” Terry Phillips, chairman of SouthPeak stated in the press release. “The capital provided under the institutional financing commitments we have received will allow us to accelerate our strategy of expanding our product portfolio and continue to outpace the industry in terms of top and bottom-line growth. SouthPeak is very well positioned to deliver unique and profitable game concepts and drive substantial shareholder value as a result.”
Upon completion of related transactions, GSPAC will change its name to SouthPeak Interactive Corporation. The current executive management team of SouthPeak, Phillips and Melanie Mroz, will then become, respectively, chairman and CEO of the new company.
SouthPeak is a video game publisher that exclusively utilizes independent studios to source and produce innovative video games. This production model allows the company to use leading-edge development talent and minimize fixed overhead. SouthPeak expects to exceed its previously announced forecasts of $30 million in revenue for its fiscal year ending June 30, 2008, a 140 percent growth over fiscal year 2007 revenue, and approximately $4.5 million in fiscal year 2008 EBITDA.
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