Q-ZAR, the Texas based company run by an Irish management team has had its shares listed in the US and has announced an $8 million (£5 million) expansion plan. The company manufactures and distributes the Q-Zar laser game and runs indoor leisure centres.
Its shares were listed on NASDAQ at $5.38 yesterday, valuing the company, which was founded in 1993, at $109 million.
President and chief executive Mr Tom Butler said the secondary listing will provide greater liquidity for the company's shareholders. A former Leisurecorp executive, Mr Butler announced at the end of last year that the company was seeking a NASDAQ quotation.
Q-Zar's primary listing is in Toronto where it was listed last year.
Q-Zar yesterday announced that it had agreed to buy Entertainment Technologies (ETI) in a $8 million deal under which the company will take over three family entertainment centres operated by ETI. These centres will be rebranded as Q-Kids and tour new centres will be added in the current quarter. The centres are franchise operations which will generate revenue for Q-Zar.
Q-Zar has issued 788,955 shares worth $4 million to ETI to part fund the deal. The remaining, $4 million will be paid at the end of the year through the issue of more Q-Zar shares to ETI. The number of shares to be handed over at the ends of the year will be calculated from an average of yesterday's share price and the price at the year's end.
ETI's stake in Q-Zar will be small. Q-Zar has 21.5 million shares in issue. Some 20 per cent of the company is owned by its management while about 40 per cent is owned by the Canadian investment company, SIAM Trading.
Last September, Q-Zar had just under $4 million to Leisurecorp for the worldwide rights to the Q-Zar indoor laser game and the Irish manufacturing plant. In December, Q-Zar reported profits after tax of $5.3 million for the first nine months of 1995 on turnover of $16.3 million.
