Jackpot Digital signs deal to buy out 52 Gaming’s royalties
The company will issue new shares and purchase warrants.
Key Points
- This completes the company’s royalty payment obligation to 52 Gaming
- The agreement is subject to TSX Venture Exchange approval
Jackpot Digital has entered into an agreement with 52 Gaming that will “extinguish all current royalty payments totaling $375,000, of which $75,000 has been paid, and all future royalty payments.”
Per the terms of the deal, the company will issue three million common shares priced at $0.14 per share, along with two million share purchase warrants that are exercisable at $0.14 per share for a five-year period.
Jackpot Digital further explained the terms of the transaction in a statement, “The issuance of securities to 52 Gaming represents a full and final settlement of all the Company’s royalty payment obligations to 52 Gaming.
“All securities that may be issued in connection with the agreement will include a hold period in accordance with applicable securities laws.”
Company President and CEO Jake Kalpakian took a moment to further discuss the recent purchase agreement.
He commented, “The strategic acquisition of 52 Gaming almost four years ago has provided intangible benefit and value.
Good to know: The transaction is subject to approval by the TSX Venture Exchange
“Our buy out of the royalty in exchange for securities at double the current share price demonstrates 52 Gaming shareholders’ confidence in Jackpot’s future.”
In other company news, Jackpot Digital recently ordered an additional 100 Jackpot Blitz dealerless poker tables. The company said production on these new units will begin immediately.
Kalpakian explained that increasing demand for new units is behind the company’s recent order.
Since its debut in 1999, Jackpot Digital has served as an electronic table games manufacturer and mobile gaming provider.
The company has expanded its land-based reach throughout the US and is present in California, Kansas, Louisiana, Michigan, Minnesota, Mississippi, Montana, Nevada, Oregon, South Dakota, US Virgin Islands and Washington.
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