HONG KONG, July 6, 2016 /PRNewswire/ -- Entertainment
Gaming Asia Inc. (NASDAQ: EGT) (the "Company") announced today that
it will sell all 670 of its electronic gaming machine (EGM) seats
placed at NagaWorld Casino to a third-party in Cambodia for $2.5
million. The purchase price is payable by the purchaser in
full in cash on completion of the sale, which is expected to occur
on or around July 6, 2016.
Prior to the sale, the Company had leased EGMs to NagaWorld
and that arrangement was terminated effective June 30, 2016 in connection with the sale
transaction.
Also today the Company announced it sold all 154 of its EGM
seats placed at Leisure World VIP Slot Club in the Philippines to the venue owner for
$750,000, of which 70% was paid on
July 4, 2016 and 30% is payable on or
before August 1, 2016. Prior to
the sale, the Company had leased EGMs to Leisure World until
June 30, 2016 when the contract
expired.
The Company continues its EGM leasing operations in two venues
in Cambodia and two venues in
the Philippines. The contracts for
these two venues in the
Philippines expired on June 30,
2016. However, the EGMs remain in operation as the Company
is working to swiftly renew these contracts retroactive to
July 1, 2016.
Clarence Chung, Chairman and
Chief Executive Officer of Entertainment Gaming Asia, commented,
"We continue our strategic efforts to refine our business
operations and position ourselves for new potential opportunities.
While the exit from two EGM leasing contracts will have a negative
impact on our near-term cash flow, we believe the cash proceeds of
the sales will further enhance our ability to pursue new growth
opportunities that will fuel long-term growth for 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 engaged in the leasing of
electronic gaming machines to the gaming industry in Cambodia and the Philippines. The Company
is also developing a free to play online social casino gaming
platform for certain Asian markets.
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 the
benefits of the EGM sales, the ability to renew the contracts for
the two remaining venues in the
Philippines and the Company's ability to secure new growth
opportunities. 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, the risk that the Company may not
achieve the expected benefits from the EGM sales, renew the
contracts for the two remaining venues in the Philippines and secure new growth projects
and those other risks set forth in the companies' respective annual
reports on Form 10-K for the year ended December 31, 2015 filed with the SEC and
subsequently filed reports. The companies caution readers not to
place undue reliance on any forward-looking statements and
they do not undertake, and specifically disclaim 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.