Entertainment Gaming Asia Announces 1-for-4 Reverse Stock Split Effective June 12, 2012
June 04 2012 - 6:40AM
Business Wire
Entertainment Gaming Asia Inc. (NYSE MKT: EGT) (“Entertainment
Gaming Asia” or “the Company”), a leading gaming company focused on
emerging gaming markets in Pan-Asia, today announced a 1-for-4
split of the Company’s common stock and corresponding decrease in
the number of authorized shares of common stock effective prior to
the market open on June 12, 2012 (the “Reverse Split”). The
Company’s shares will continue to trade on the NYSE MKT under the
symbol EGT. In connection with this transaction, the Company has
been assigned a new CUSIP number 29383V 206.
Clarence Chung, Chairman and Chief Executive Officer of
Entertainment Gaming Asia, commented, “We have elected to effect a
reverse stock split as part of our efforts to better align the
stock price with the Company’s accomplishments and future growth
potential. We believe this transaction will broaden our shareholder
base and increase the appeal of the stock to institutional
investors. Further, it should provide benefits to our shareholders
by facilitating lower transaction costs and improved trading
liquidity in the stock. The reverse split follows meaningful
improvement in our financial performance and the implementation of
our strategic growth plans, which we believe will increase the
marketability of the stock and thereby enhance long-term
shareholder value.”
As of the effective date, every four shares of common stock of
Entertainment Gaming Asia will automatically combine into one share
of common stock. The Reverse Split will reduce the number of shares
of outstanding common stock from approximately 120 million
pre-split to approximately 30 million post-split. The number of
authorized shares of common stock will be reduced from 300 million
to approximately 75 million. Proportional adjustments will be made
to the Company’s stock options and equity compensation plans. All
fractional shares will be rounded up to the nearest whole number.
The Reverse Split will not negatively affect any of the rights that
accrue to holders of Entertainment Gaming Asia common stock or
options.
Shareholders as of the effective date with outstanding
certificates will be asked to exchange them for new certificates
representing the post-split number of shares with the new CUSIP
number. The Company’s transfer agent, Continental Stock Transfer
& Trust Company, is the exchange agent for the Reverse Split
and will distribute a letter of transmittal to shareholders with
instructions on how to surrender old stock certificates. In the
meantime, each outstanding certificate that prior to the Reverse
Split represented shares of common stock of the Company will
thereafter represent shares of common stock in the post-split
amount. For more information on the Reverse Split, please visit
www.egt-group.com/ReverseStockSplitFAQs.html.
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (NYSE MKT: EGT) is a
leading gaming company in Pan-Asia engaged in the
development and operation of casinos and gaming venues in the
Indo-China region under its “Dreamworld” brand as well as the
leasing of electronic gaming machines on a participation basis to
the gaming industry. The Company also manufactures and sells RFID
and traditional gaming chips and plaques to major casinos through
its wholly-owned subsidiary Dolphin Products in Australia. For more
information please visit www.EGT-Group.com.
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 broadening the shareholder base of Entertainment
Gaming Asia, increasing the appeal of its stock to institutional
investors, facilitating lower transaction costs, improved trading
liquidity of the stock, the earnings potential of the Company’s
current gaming operations, its ability to execute on its strategy
to expand its gaming operations, and the overall growth of the
gaming industry in the Company’s target markets. 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 Entertainment Gaming Asia’s ability to place
gaming machines at significant levels and generate the expected
amount of net win from the gaming machines placed, obtain the
gaming license and building permits for the casino projects on a
timely basis or at all, complete construction and development of
the casino and gaming projects on budget and in a timely manner,
identify and successfully develop additional such projects in the
Indo-China region, acquire additional capital as and when needed,
adverse weather conditions that cause delays to casino and gaming
projects timelines, obtain and fulfill significant purchase orders
from the new customers for the Company’s gaming chips and plaques
and those other risks set forth in Entertainment Gaming Asia’s
annual report on Form 10-K for the year ended December 31, 2011
filed with the SEC on March 30, 2012 and subsequently filed
quarterly reports on Form 10-Q. Entertainment Gaming Asia cautions
readers not to place undue reliance on any forward-looking
statements. Entertainment Gaming Asia 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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