TORONTO, ONTARIO–(Marketwired – June 28, 2017) – Clairvest Group Inc. (TSX:CVG) (“Clairvest”) is providing an update on the previously announced regulatory issues with respect to its investment in Head InfoTech India Pvt. Ltd. (“Head InfoTech”). On June 17, 2017, the Telangana (India) state government issued an ordinance which, among other things, made it illegal to operate an online gaming platform within the state (providing services to customers within the state and operating such a business within the state serving customers outside the state) (the “Ordinance”). Head InfoTech, which operates an online skill based gaming platform, immediately shut down its operations in response to the Ordinance.
Head InfoTech, along with other online rummy companies in India, are challenging the validity of the Ordinance in the Indian courts. While final resolution of the court challenge is pending, on June 28, 2017 the High Court for the State of Telangana made an oral observation that serving customers outside Telangana should not entail any violation of the Ordinance to which the advocate general representing the state government was agreeable while reserving the right to respond fully in arguments scheduled for next week. Accordingly, Head InfoTech has resumed operations for customers outside of Telangana. Revenue from customers outside of Telangana represented approximately 60% of Head InfoTech’s overall revenue.
There is no assurance that Head InfoTech will ultimately be successful in its court challenge or that interim relief (consistent with the above mentioned oral observation) will be granted following next week’s court proceedings.
About Clairvest
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Forward-looking Statements
This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, it CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Such factors include general and economic business conditions and regulatory risks; the risk that interim relief will be not be granted to enable Head InfoTech to continue operations outside Telangana consistent with the above mentioned oral observation, or if interim relief is granted, the timing of any such relief and whether such relief is subject to conditions and, if so, the nature of those conditions. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Maria Klyuev
Director, Investor Relations and Marketing
(416) 925-9270
(416) 925-5753 (FAX)
[email protected]
