Vancouver, British Columbia (FSCwire) - Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) (the “Company” or “Jackpot”) (TSX-V: JP) (US OTC Pink: JPOTF) (Frankfurt & Berlin Exchanges: LVH). Jackpot, a developer and provider of electronic table games, and a developer and licensor of iGaming mobile products which include HTML5 poker, casino and bingo games, is pleased to announce that it has entered into an exclusive engagement letter (the “Engagement Letter”) with Kingsdale Capital Markets Inc. (the “Agent”) whereby the Company and the Agent have agreed to enter into, under certain terms and conditions, a definitive exclusive agency agreement. Pursuant to the Engagement Letter, Jackpot shall raise gross proceeds of up to $10,000,000 (the “Brokered Private Placement Financing”) by means of non-convertible secured debentures (“Debentures”).
President & CEO Mr. Jake Kalpakian states: “This transaction will immediately reduce our interest and royalty payments drastically and will enable the Company to keep a larger portion of its cash flow while at the same time allowing it to significantly expand operations to take advantage of some very accretive/strategic synergies that our wireless software business and electronic poker table business uniquely share. The capturing of these operating synergies should further contribute to increased cash flows and position the Company for sustained growth”.
Presently, the Company has approximately 150 electronic tables generating recurring revenues. The Company has approximately 74 electronic tables on Carnival Cruise Lines. In addition, the Company’s electronic tables are operational with MSC Cruises, the Ontario Lottery and Gaming Corporation, City of Dreams (Melco Crowne Macau), Plaza Hotel & Casino LLC (Las Vegas), Aliante Casino (Las Vegas), Oaklawn Racing and Gaming (Arkansas) and several Native Indian Casinos in the U.S. Furthermore, the Company’s wireless HTML5 product is on five Carnival brand line cruises and is expected to rapidly increase in the near future.
Mr. Kalpakian further states: “we have evolved into a dominant industry leader in a niche market with enormous growth opportunities and we are positioning to leverage our unique place in the market with our products in relation to strong market demand”.
The main features of the Debentures are as follows:
- shall bear simple interest at the rate of 10% per annum which shall be payable on a quarterly basis (the “Interest”);
- shall have a term of 36 months (the “Maturity Date”);
- shall be secured by the assets of Jackpot;
- shall receive 10% of the Issue Price in common shares of Jackpot as a bonus at the price of $0.05 per common share (the “Initial Bonus”);
- shall receive a participation of 7.5% in the Company’s gross revenues generated from the Company’s assets during the term of the Debenture and such participation shall not exceed 10% per year of the Issue Price (the “Gross Revenues Participation”);
- in the event that the Company prepays the Debentures prior to the first anniversary of the issuance of the Debentures (the “First Anniversary”), then the Company shall pay to the Debenture holders, as an additional bonus, Interest and Gross Revenues Participation for the remaining period of the First Anniversary (the “Subsequent Bonus”);
and,
- in the event that the Company prepays the Debentures at any time after the First Anniversary, then the Company shall pay to the Debenture holders Interest and Gross Revenues Participation up to the date of the prepayment of the Debentures, at which time the Company shall have no further obligations to the Debenture holders.
In respect to this Brokered Private Placement Financing, the Company shall pay a commission of 10% in cash and up to 2,000,000 broker warrants exercisable at $0.05 per broker warrant for a period of 2 years to the Agent.
The Company intends to use the gross proceeds from the Financing as follows:
- to pay out the existing two debenture holders which have an aggregate face value of US $2.5 million;
- to pay approximately US $3.4 million for the outstanding purchase price of the assets acquired from MultiMedia Games, Inc. (“MultiMedia”), a subsidiary of Everi Holdings Inc. (EVRI – NYSE)
and,
- the balance shall be utilized towards the Company’s working capital requirements.
This transaction is subject to the approval of the TSX Venture Exchange.
About Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.)
Since 1999, Jackpot has been a reputable provider of innovative gaming software offering a multitude of multiplayer games, including poker and casino, and is committed to bringing an enjoyable experience to players and delivering great results to operators. Our lengthy track record in gaming software development, financial accountability, and cardroom operations have made us one of the leading software developers in the industry.
For more information on the Company, please contact Jake H. Kalpakian, President, 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.
This news release contains forward-looking information that involve various risks and uncertainties regarding future events. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) the inability to obtain TSX Venture Exchange approval of this transaction; ii) the inability of the Company to secure all or part of the $10 million financing and (iii) other factors beyond the Company’s control. Actual results and future events could differ materially from those anticipated in such information.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/jackpot10072015.pdfSource: Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) (TSX Venture:JP, OTC Pink:JPOTF, FWB:LVH) http://www.jackpotdigital.com/
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