re: short covering ... clark EBet(ASX:EBT) will acquire Octavian...

re: short covering ... clark EBet
(ASX:EBT) will acquire Octavian Gaming Systems, a UK based company
selling products in over 30 countries.
Octavian's revenue is expected to exceed $US46m in 2006 and the
combined entity would achieve revenue of around $80m in 2006.
The initial purchase price is initially $US23.2m ($30m)
calculated as a multiple of 7.68 times forcast NPBT of $US3m for Octavian
in 2006.
It will be paid by 136.8 million eBet shares at 22c each.
Additional payments are to be made as a mixture of cash and
shares with the share component being issued at 22.5c, 25c, 27.5c and 30c
each in years 2007 to 2010.
This would be made subject to achievement of paid sales of
Octavian products.
EBet will undertake a limited capital raising to provide working
capital.
The transaction is conditional on eBet securing commitments to
raise at least $US5m.
On completion Octavian will hold 32pc of eBet and, if all targets
are met, it will end up with 43pc.
EBet shares were steady at 19c.