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Jackpot Digital Inc V.JJ

Alternate Symbol(s):  JPOTF | V.JJ.WT.C

Jackpot Digital Inc. is a Canada-based software developer and 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. The Company's flagship product, Jackpot Blitz, is essentially a digital smart table which brings the social benefits of multiplayer casino games, such as poker, blackjack and baccarat, into the digital era. The 75-inch, 4k touchscreen creates a stunning player experience while controlling costs and maximizing operator efficiency, flexibility, and profitability. Jackpot Blitz offers a fully automated table with eight player seats. It provides instant payment by integrating casino management systems. The Company offers automatic report generation from any mobile device or computer.


TSXV:JJ - Post by User

Bullboard Posts
Post by wrightonon Dec 11, 2016 6:12pm
856 Views
Post# 25583070

Some thoughts on the offering

Some thoughts on the offering


First, if you have not listened to the conference call, or the replay, I don't think you can add much to any conversation on the offering.  Jake Kalpakian is definitely not a great public speaker, but he provides information not available in the press releases.

From my perspective, it looks like the company is toast without extra capital.  At least the way the offering is structured, present shareholders have an opportunity to buy more shares for cheap, and maybe the company survives.  If shareholders don't take advantage of the offer, the guarantors will, so the company will definitely have the funds to continue for a while.

If you don't like the company's chances, and are a shareholder, you likely can sell on Mon Dec 12 for .03.  Since the offer is for shareholders of record on Dec 15, anyone wishing to buy shares to take advantage of it must buy tomorrow (3 days settling time) Tuesday the shares are ex-offer and I'm guessing price will be down then. 

Since shares will double, one might think the share price would drop from .02 to .01.  However, maybe speculators (we are not investors!) will like the fact that the company now has enough capital to complete and launch the upgraded poker table, and can actually make a go of the business, and share price will increase.  This is literally a penny stock, so volatility is sky-high, and I have no idea how share price will evolve!

Guarantors who are required to purchase shares over their allotted quantity will be given more warrants, so I believe it would be in the interests of shareholders of record to take advantage of the offer, as there would then be fewer additional warrants outstanding, since guarantors would not be buying as many units as they have guaranteed.

The warrants will trade on the open market.  Will they be assigned any significant value?  I don't know, but let's suppose there are buyers at .01.  If you wanted to, you could sell the warrants, and you now have your extra shares for free.

I'm not advocating any buy-sell position here.  I'm just trying to provide a bit of information and objective analysis in hopes it helps a few people to decide.

Bullboard Posts