Jackpot Buys Out 52 Gaming Royalty
Rhea-AI Summary
Jackpot Digital has reached an agreement with 52 Gaming to eliminate all current and future royalty payment obligations through a securities-based settlement. The company will issue 3,000,000 common shares at $0.14 per share and 2,000,000 share purchase warrants, exercisable at $0.14 for five years. This arrangement extinguishes the remaining US$300,000 of the total US$375,000 in royalty payments, with US$75,000 having been previously paid. The securities will include a mandatory hold period per applicable laws, and the transaction requires TSX Venture Exchange approval.
Positive
- Settlement eliminates US$300,000 in remaining royalty payment obligations
- Share issuance price of $0.14 is double the current market price
- Long-term warrants provide potential future capital at fixed price
Negative
- Dilution of existing shareholders through issuance of 3,000,000 new shares
- Additional potential dilution from 2,000,000 warrants if exercised
News Market Reaction – JPOTF
On the day this news was published, JPOTF gained 0.63%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - November 4, 2024) - Jackpot Digital Inc. (TSXV: JJ) (TSXV: JJ.WT.C) (OTCQB: JPOTF) (FSE: LVH3) (the "Company" or "Jackpot") announces that pursuant to the Asset Purchase Agreement entered into between the Company and 52 Gaming Inc. ("52 Gaming") on February 10, 2021, the parties have entered into an agreement to extinguish all current royalty payments totaling US
President & CEO, Mr. Jake Kalpakian, states, "The strategic acquisition of 52 Gaming almost four years ago has provided intangible benefit and value. Our buy out of the royalty in exchange for securities at double the current share price demonstrates 52 Gaming shareholders' confidence in Jackpot's future."
The foregoing transaction is subject to the approval of the TSX Venture Exchange.
About Jackpot Digital Inc.
Jackpot Digital Inc. is a software developer and a leading electronic table games manufacturer and mobile gaming provider for the cruise ship industry and regulated casino industry. The Company specializes in multiplayer gaming products, including poker and casino games, which are complemented by a robust suite of backend tools for operators to efficiently control and optimize their gaming business.
For more information on the Company, please contact Jake H. Kalpakian, President and CEO, at (604) 681-0204 ext. 6105, or visit the Company's website at www.jackpotdigital.com.
On behalf of the Board of Jackpot Digital Inc.
"Jake H. Kalpakian"
_____________________________
Jake H. Kalpakian
President & CEO
Trading in the securities of the Company should be considered speculative.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Certain statements contained herein are "forward-looking." Forward-looking statements may include, among others, statements regarding future plans, projected financings, costs, objectives, economic or technical performance, or the assumptions underlying any of the foregoing. In this News Release, words such as "may", "would", "could", "will", "likely", "enable", "feel", "seek", "project", "predict", "potential", "should", "might", "objective", "believe", "expect", "propose", "anticipate", "intend", "plan", "plans" "estimate", and similar words are used to identify forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, projections and estimations, there can be no assurance that these assumptions, projections or estimations are accurate. Readers, shareholders and investors are therefore cautioned not to place reliance on any forward-looking statements as the plans, assumptions, intentions or expectations upon which they are based might not occur.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228836