HONG KONG, Feb. 24, 2015 /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 a
1-for-4 reverse split of the Company's common stock and
corresponding decrease in the number of authorized
shares of common stock. The Company is
effecting the reverse split in an effort to regain compliance with
The NASDAQ Stock Market LLC's (the "NASDAQ") minimum bid price
requirement for its Capital Market. The reverse split
will take effect prior to the market open on February 26, 2015.
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Clarence Chung, Chairman
and Chief Executive Officer of Entertainment Gaming Asia,
commented, "We are effecting the reserve split as a
means to regain listing compliance. We are focused on improving our
operating performance and are seeking new projects to fuel
long-term growth for the Company. We believe we have significantly
improved our positioning to secure new gaming projects following
the successful completion of our recent rights offering. As a
result of this offering, we raised net cash proceeds of
approximately $14.0 million and
became an indirect, majority-owned subsidiary of Melco
International Development Limited, a leader in Asian gaming. We
believe with our improved financial flexibility and
deepened credibility in our markets, we are better positioned than
ever to capitalize on the opportunities in the frontier gaming
markets of Southeast
Asia."
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 57.9
million pre-split to approximately 14.5 million post-split. The
number of authorized shares of common stock will be reduced from
75.0 million to approximately 18.8 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. In connection with this transaction, the Company
has been assigned a new CUSIP number 29383V 305
however, its shares will continue to trade on
the NASDAQ Capital Market under the symbol EGT.
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.
The reverse stock split is intended to
increase the per share trading price of the Company's common stock
to satisfy the $1.00 minimum bid
price requirement for continued listing on the NASDAQ Capital
Market. However, there can be no assurance that the reverse stock
split will enable the Company to regain compliance with the minimum
bid price or maintain its listing.
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 regaining
listing compliance with
NASDAQ's minimum bid price requirement for its
Capital Market, improving
the Company's operating performance,
its ability to execute on its strategy to secure
new gaming projects and 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, the risk that following the
reverse split the Company's common stock will not trade at a share
price that is proportionately adjusted for the reverse split in
order to regain listing compliance with
NASDAQ's minimum bid price
requirement and 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, identify and successfully
develop additional projects in its target markets, obtain the
gaming license and building permits for gaming projects on a timely
basis or at all, complete construction and development of gaming
projects on budget and in a timely manner, acquire additional
capital as and when needed,
and those other risks set forth
in Entertainment Gaming
Asia'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. 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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SOURCE Entertainment Gaming Asia Inc.