HONG KONG, July 6, 2016 /PRNewswire/ -- Entertainment Gaming Asia Inc. (NASDAQ: EGT) (the "Company") announced today that it will sell all 670 of its electronic gaming machine (EGM) seats placed at NagaWorld Casino to a third-party in Cambodia for $2.5 million. The purchase price is payable by the purchaser in full in cash on completion of the sale, which is expected to occur on or around July 6, 2016. Prior to the sale, the Company had leased EGMs to NagaWorld and that arrangement was terminated effective June 30, 2016 in connection with the sale transaction.
Also today the Company announced it sold all 154 of its EGM seats placed at Leisure World VIP Slot Club in the Philippines to the venue owner for $750,000, of which 70% was paid on July 4, 2016 and 30% is payable on or before August 1, 2016. Prior to the sale, the Company had leased EGMs to Leisure World until June 30, 2016 when the contract expired.
The Company continues its EGM leasing operations in two venues in Cambodia and two venues in the Philippines. The contracts for these two venues in the Philippines expired on June 30, 2016. However, the EGMs remain in operation as the Company is working to swiftly renew these contracts retroactive to July 1, 2016.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "We continue our strategic efforts to refine our business operations and position ourselves for new potential opportunities. While the exit from two EGM leasing contracts will have a negative impact on our near-term cash flow, we believe the cash proceeds of the sales will further enhance our ability to pursue new growth opportunities that will fuel long-term growth for the Company."
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (NASDAQ: EGT), an indirect, majority-owned subsidiary of Melco International Development Limited, is a gaming company engaged in the leasing of electronic gaming machines to the gaming industry in Cambodia and the Philippines. The Company is also developing a free to play online social casino gaming platform for certain Asian markets.
Forward Looking Statements
This press release contains forward-looking statements concerning Entertainment Gaming Asia within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding the benefits of the EGM sales, the ability to renew the contracts for the two remaining venues in the Philippines and the Company's ability to secure new growth opportunities. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that the Company may not achieve the expected benefits from the EGM sales, renew the contracts for the two remaining venues in the Philippines and secure new growth projects and those other risks set forth in the companies' respective annual reports on Form 10-K for the year ended December 31, 2015 filed with the SEC and subsequently filed reports. The companies caution readers not to place undue reliance on any forward-looking statements and they do not undertake, and specifically disclaim any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
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SOURCE Entertainment Gaming Asia Inc.