VANCOUVER, BC / ACCESSWIRE / February 12, 2021 / Jackpot Digital Inc. ( "Jackpot") (TSXV:JJ)(TSXV:JJ.WT.A)(TSXV:JJ.WT.B)(TSXV:JJ.WT.C)(OTCQB:JPOTF)(Frankfurt:LVH3)(Berlin:LVH3). Further to the Company's News Releases dated December 15, 2020, the Company is pleased to announce that it has received TSX Venture Exchange approval and has closed its transaction of acquiring certain assets of 52 Gaming, LLC ("52 Gaming"). 52 Gaming, based in North Carolina, has manufactured and licensed its electronic poker tables ("ETGs") to the cruise ship industry.
Terms of the transaction are as follows:
a) Cash payment of US$107,500 on the closing date by Jackpot to 52 Gaming;
b) A promissory note by Jackpot for the amount of US$470,000 which shall have a term of twenty-four months, shall bear 10% simple interest per annum, and which may be prepaid by Jackpot;
c) On the closing date, Jackpot shall issue 1,500,000 common shares to 52 Gaming;
d) On the closing date, Jackpot shall issue 2,000,000 share purchase warrants to 52 Gaming exercisable at $0.105 per share for a period of five years;
and,
e) Commencing January 2022 and for a period of ten years Jackpot shall make variable royalty payments to 52 Gaming.
52 Gaming was founded in 2017 by the principals of Pokertek, the original company that developed the original PokerPro, and whose assets were eventually acquired by Everi, and ultimately sold by Everi to Jackpot. Through the acquisition, which includes a non-compete in the ETG poker market, the Company has purchased strategic assets that includes hardware, software, a US Patent and licensing contracts with five Holland America cruise ships and one with P&O Cruises Australia.
Mr. Jake Kalpakian, President & CEO, states, "We are excited to acquire these 52 Gaming assets. They are complementary and strategic to our long-term operations. Upon the resumption of the operations of the cruise ship industry, we will increase our monthly cashflow with the additional six vessels, and furthermore will enjoy an even more dominant position and at this time a virtually uncontested market presence in the global ETG poker market. More importantly, 52 Gaming's US Patent complements our own IP strategy and combined together with our other existing advantages should create an even stronger moat for the Company."
Mr. Kalpakian continues, "We respect the positive contributions of 52 Gaming's principals who are regarded as pioneers in the ETG poker space, and we welcome them in becoming shareholders of the Company."
Mr. Lyle Berman, a member of the Poker Hall of Fame, Co-founder of 52 Gaming, World Poker Tour, Lakes Entertainment among several other casino businesses says, "Jackpot Blitz table is an exciting casino technology that offers additional revenue streams for operators and new gaming experiences for players. I am very pleased about my association with the company, in addition to their current products, I believe future products in their pipeline will continue to help grow the company."
About Jackpot Digital Inc.
Jackpot Digital Inc. is 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, 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", "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.
SOURCE: Jackpot Digital Inc.