More acquistions Seven Aces Limited Completes 25th Acquisition and Acquires Seven Gaming Contracts
Thursday, February 27, 2020 7:45 AM
TORONTO, ON / ACCESSWIRE / February 27, 2020 / Seven Aces Limited (the "Company") (TSXV:ACES) is pleased to announce that its 70% owned subsidiary, Lucky Bucks, LLC ("Lucky Bucks"), has acquired seven additional gaming contracts from digital skill-based gaming terminal operators based in the U.S. State of Georgia. Lucky Bucks acquired three location contracts from Topaz Amusement LLC in exchange for cash consideration of US$1,850,135 (the "Topaz Acquisition") and four location contracts from J&G Amusement Inc. ("J&G") in exchange for cash consideration of US$1,527,488 on closing (the "J&G Acquisition", together with the Topaz Acquisition, the "Acquisitions")). Pursuant to the terms of the J&G Acquisition, J&G is entitled to additional consideration payable in the event of the satisfaction of certain conditions related to post-closing revenue generation. The amount of the additional consideration, if any, which may become payable to J&G will be determined by reference to the actual performance of the acquired location contracts. In the event that the acquired location contracts materially outperform historical results, the additional consideration payable may materially increase the aggregate purchase price paid for the contracts acquired from J&G.
Manu K. Sekhri, Chief Executive Officer of Seven Aces Limited, added the following remarks: "These acquisitions are consistent with our strategy of adding high performing locations in the state of Georgia. These acquisitions represent an important milestone in our company's history being the 24th and 25th transactions we have completed."
The purchase price for the Acquisitions was funded by Lucky Bucks through an advance under the credit facility described in the press release of the Company dated January 29, 2020 and titled "Seven Aces Limited Announces New US$165 Million Credit Facility and Acquisition of Additional Gaming Contracts". The gaming contracts that have been acquired are fully licensed and governed by the Georgia Lottery Corporation, and offer players a variety of skill-based coin-operated amusement machines.