HONG KONG, June 26, 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, today announced that it has entered into an agreement to
sell 100% of the issued capital shares of Dreamworld Leisure
(Pailin) Limited ("DWP"), a wholly-owned Cambodian subsidiary of
the Company established for the purposes of owning and operating
Dreamworld Casino (Pailin) ("Dreamworld Pailin"), to a local
Cambodian individual (the "Purchaser"). In connection with the
sale, the Company also entered into an agreement to terminate all
previous agreements with the Company's partner in the operations
(the "Partner"), who is a relative of the Purchaser. Dreamworld
Pailin, a regional casino developed and operated by the Company,
opened in May 2012 and was constructed on land owned by
the Partner in the Pailin Province of Northwestern Cambodia next to the Thailand border.
While operating losses for Dreamworld Pailin have narrowed in
recent months, due to an inability to secure a long-term
third-party table game operator, a low level of natural player
traffic and the political unrest in Thailand, the Company has been exploring
strategic alternatives for the property. After careful evaluation
of all options, on June 20, 2014 the
Company entered into an agreement to sell 100% of the issued shares
of DWP to the Purchaser. The sale includes all assets of DWP with
the exception of all electronic gaming machines, certain
surveillance equipment and other assets excluded in the agreement
and prohibits any use of the Dreamworld brand name by the
Purchaser. Total consideration paid to the Company by the Purchaser
will be $500,000, of which
$100,000 was paid at the time of
entering the agreement and the balance is to be paid in sixteen
$25,000 monthly installments
commencing within one month of the signed agreement. The parties
expect to complete the sale transaction subject to the Purchaser's
receipt of certain government approvals, which is expected within
the next few months.
In connection with the sale of the issued capital shares of DWP,
on June 20, 2014 the Company and the
Partner entered into an agreement to terminate the previous
agreements with the Partner and all future obligations thereunder
including future lease payments owed by the Company.
As previously reported, the Company recorded an impairment
charge of approximately $2.5 million
as of December 31, 2013 related to
Dreamworld Pailin. The impairment charge represented the entire
capital expenditure incurred for the property as of December 31, 2013 with the exception of those
assets that the Company believes could be redeployed to other
existing properties.
About Entertainment Gaming Asia Inc.
Entertainment
Gaming Asia Inc. (NASDAQ: EGT) 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. 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 the completion of the sale of Dreamworld
Leisure (Pailin) Limited and the Company's expected receipt of the
$25,000 monthly installment payments
over the next 16 months. 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 the
Company may not receive all of the 16 monthly payments related to
the sale of Dreamworld Leisure (Pailin) Limited and the 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.