NYX GAMING GROUP LTD 11 PCT DEBS V.NYX.DB

COULD THIS BE THE SELLER?

[seajust]

Amaya* (AYA : TSX : $19.55), Net Change: -0.42, % Change: -2.10%, Volume: 329,067 Pollard Banknote* (PBL : TSX : $8.80), Net Change: 0.80, % Change: 10.00%, Volume: 59,015 Innova Gaming Group* (IGG : TSX : $2.02), Net Change: 0.51, % Change: 33.77%, Volume: 421,715 BUILDING UP THE CHIP STACK. Amaya Gaming announced it has entered a support agreement with Pollard Banknote for 8.2M shares of INNOVA Gaming. This represents 40.45% ownership of INNOVA and the agreement requires Pollard Banknote to make an offer for all outstanding shares of INNOVA Gaming at a per share price of at least $2.10; this represents cash proceeds of $17.2M which further supports Canaccord Genuity Gaming Tech Analyst Kevin Wright’s view that Amaya is on track to continue to pay down its obligations using non-dilutive means and that the company continues its trend of deleveraging. Wright also believes that this may indicate a willingness by Amaya to free up cash from investments that it holds in other gaming companies, which include roughly 5.2M shares of NYX Gaming (NYX) and 5.1M shares of LSE-listed Jackpotjoy. This comes in addition to a high level of FCF that Wright expects that the company can generate in 2017E and 2018E as the poker segment stabilizes and the company shows continued progress in its casino and sports products. Amaya reports Q4/16 results on March 22. Wright expects that Amaya will continue to show continued revenue growth in its casino vertical and its sports book product. Wright is forecasting YoY declines in poker as regulations change in various jurisdictions though the company could surprise us over the next 12 months as it aims to stabilize the business.