LOS ANGELES, March 29, 2016 /PRNewswire/ - INNOVA Gaming Group Inc. ("INNOVA" or the "Company") (TSX: IGG), today announced that the Toronto Stock Exchange ("TSX") has approved INNOVA's notice of intention to make a normal course issuer bid ("NCIB") to purchase for cancellation up to 1,199,066 common shares of the Company (the "Common Shares"), representing approximately 10% of the public float of Common Shares issued and outstanding as of March 28, 2016. INNOVA may purchase the Common Shares at prevailing market prices and by means of open market transactions through the facilities of the TSX or alternative Canadian trading systems or by such other means as may be permitted by the TSX rules and policies. The actual number of Common Shares that may be purchased and the timing of any such purchases will be determined by the Company. In accordance with the applicable TSX rules, daily purchases under the NCIB will be limited to 8,836 Common Shares, representing 25% of the average daily trading volume of the Common Shares for the most recent completed six calendar months ending on February 29, 2016, and the Company may make, once per calendar week, a block purchase of Common Shares not owned, directly or indirectly, by insiders of INNOVA that exceeds the daily repurchase restriction. The NCIB will commence on March 31, 2016 and will remain in effect until the earlier of March 30, 2017 or the date on which the Company has purchased the maximum number of Common Shares permitted under the NCIB. As of March 28, 2016, 20,450,000 Common Shares are issued and outstanding.
INNOVA is making the NCIB because it believes that, from time to time, the prevailing market price of its Common Shares may not reflect the underlying value of the Company, and that purchasing Common Shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.
"On March 15, 2016, we reported fiscal 2015 results that met or exceeded all of our growth objectives," said Richard Weil, Chairman and CEO of INNOVA. "This year, we are executing strongly and expect to see further growth in units, revenue and earnings per Common Share. In our estimation, the public market valuation of our equity is significantly detached from the multiple that our strong balance sheet and substantial recurring revenue base would garner in a normalized equity market environment. As a result, we will be using a portion of our free cash flow to buy back our own stock while continuing to deliver fundamental performance and growth, for our loyal shareholders."
In connection with the NCIB, INNOVA has appointed Canaccord Genuity Corp. as the broker through which purchases of the Common Shares pursuant to the NCIB will be made.
About INNOVA Gaming Group Inc.
INNOVA develops unique games and products for the global gaming industry, with particular focus on state and provincial lotteries. Through the Company's wholly owned subsidiary, Diamond Game, INNOVA focuses on enhancing the revenues of government-sponsored lotteries and other regulated operators by offering its unique "extended play" products in traditional and non-traditional gaming venues. Its primary product is the LT-3, an instant ticket vending machine that dispenses tickets while simultaneously displaying the results of each ticket on a video monitor in an entertaining fashion. For more information, please visit www.innovagaminggroup.com.
Certain statements included herein, including those that express management's expectations or estimates of our future performance or future events, including, without limitation, INNOVA's intention and ability to complete the NCIB, its expected future growth in units, revenue and earnings per Common Share, future performance and growth, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic, regulatory and competitive uncertainties, contingencies and risks that could cause actual results or events to differ materially from those expressed or implied in such statements. Applicable risks and uncertainties include those identified under the heading "Risk Factors" in INNOVA's annual management's discussion and analysis dated March 15, 2016 and in other filings that INNOVA has made and may make with applicable securities authorities in the future, including, as applicable, under the heading "Risk Factors" in INNOVA's latest annual information form, all of which are or will be available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements contained herein reflect INNOVA's current views with respect to future events, and except as required by law, INNOVA does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events, or otherwise.
SOURCE INNOVA Gaming Group