HONG KONG, Dec. 1, 2014 /PRNewswire/ -- Entertainment
Gaming Asia Inc. (NASDAQ: EGT) ("Entertainment Gaming Asia" or "the
Company"), a gaming company focused on emerging gaming markets in
Pan-Asia, reported today the completion of its previously announced
rights offering, which expired on Tuesday,
November 25, 2014. The Company sold 27,777,673 shares of its
common stock, representing 100% of the shares offered in the rights
offering, at the $0.54 per share
offering price, for aggregate gross proceeds of approximately
$15.0 million. As a result of the
rights offering, the total number of outstanding shares of the
Company's common stock has increased to 57,879,835.
In the offering, the Company's stockholders purchased a total of
11,394,689 shares of common stock pursuant to their basic
subscription privilege, and those stockholders who fully exercised
their basic subscription privilege elected to purchase a total of
18,196,497 shares of common stock pursuant to their
oversubscription privilege. Since only 16,382,984 shares were
available for purchase pursuant to the oversubscription privilege,
those persons who exercised their oversubscription privilege
received their pro rata allotment of the 16,382,984 shares eligible
for purchase based on the number of shares issued to them under
their basic subscription privilege.
EGT Entertainment Holding Limited, a wholly-owned subsidiary of
Melco International Development Limited ("Melco") and the Company's
largest stockholder, subscribed for 27,777,673 shares by exercising
its basic and oversubscription privileges. After giving effect to
the proration of oversubscription shares, Melco, through its
subsidiary EGT Entertainment Holding Limited, was issued 26,062,294
shares, or 93.8% of the offering, and is now the majority owner of
the Company with approximately 64.8% of its outstanding shares of
common stock. The Company's officers and members of its Board of
Directors collectively subscribed for a total of 1,732,756 shares
by exercising their basic and oversubscription privileges. They
were issued a combined total of 1,634,679 shares of EGT common
stock, or 5.9% of the offering.
Clarence Chung, Chairman and
Chief Executive Officer of Entertainment Gaming Asia, commented,
"We are pleased to announce the completion of a successful rights
offering and thank all those participating stockholders,
particularly Melco whose support has been instrumental in this
process. This offer is an important step in our plan to improve our
capital resources and liquidity as we seek to secure meaningful new
gaming projects in our target markets. We believe that the strong
participation by Melco as well as our Board of Directors in this
offering demonstrates their continued support of the
Company."
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (NASDAQ: EGT), an indirect
majority-owned subsidiary of Melco International Development
Limited, is a gaming company in Pan-Asia engaged in the
leasing of electronic gaming machines on a revenue sharing basis to
the gaming industry in Cambodia
and the Philippines and the
development and operation of casinos and gaming venues in the
Indo-China region under its "Dreamworld" brand. The
Company also manufactures and sells RFID and traditional gaming
chips and plaques to major casinos under its "Dolphin"
brand.
Forward Looking Statements
This press release contains forward-looking statements
concerning Entertainment Gaming Asia within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Those
forward-looking statements include statements regarding
expectations for the Company's ability to secure new casino and
gaming projects and fund those projects. Such statements are
subject to certain risks and uncertainties, and actual
circumstances, events or results may differ materially from those
projected in such forward-looking statements. Factors that could
cause or contribute to differences include, but are not limited to,
risks related to the Company's gaming projects and its ability to
identify and successfully develop additional projects, acquire
additional capital as and when needed, adapt to potential changes
in gaming policies and political stability in the countries in
which the Company operates and those other risks set forth in the
Company's annual report on Form 10-K for the year ended
December 31, 2013 filed with the SEC
on March 31, 2014 and subsequently
filed quarterly reports on Form 10-Q. The Company cautions readers
not to place undue reliance on any forward-looking statements. The
Company does not undertake, and specifically disclaims any
obligation to update or revise such statements to reflect new
circumstances or unanticipated events as they occur.
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SOURCE Entertainment Gaming Asia Inc.