Entertainment Gaming Asia Announces Completion Of Successful Rights Offering

- Company Raises Gross Proceeds of Approximately $15.0 Million in Oversubscribed Offering -

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Dec 01, 2014, 08:30 ET

HONG KONG, Dec. 1, 2014 /PRNewswire/ -- Entertainment Gaming Asia Inc. (NASDAQ: EGT) ("Entertainment Gaming Asia" or "the Company"), a gaming company focused on emerging gaming markets in Pan-Asia, reported today the completion of its previously announced rights offering, which expired on Tuesday, November 25, 2014. The Company sold 27,777,673 shares of its common stock, representing 100% of the shares offered in the rights offering, at the $0.54 per share offering price, for aggregate gross proceeds of approximately $15.0 million. As a result of the rights offering, the total number of outstanding shares of the Company's common stock has increased to 57,879,835.

In the offering, the Company's stockholders purchased a total of 11,394,689 shares of common stock pursuant to their basic subscription privilege, and those stockholders who fully exercised their basic subscription privilege elected to purchase a total of 18,196,497 shares of common stock pursuant to their oversubscription privilege. Since only 16,382,984 shares were available for purchase pursuant to the oversubscription privilege, those persons who exercised their oversubscription privilege received their pro rata allotment of the 16,382,984 shares eligible for purchase based on the number of shares issued to them under their basic subscription privilege.

EGT Entertainment Holding Limited, a wholly-owned subsidiary of Melco International Development Limited ("Melco") and the Company's largest stockholder, subscribed for 27,777,673 shares by exercising its basic and oversubscription privileges. After giving effect to the proration of oversubscription shares, Melco, through its subsidiary EGT Entertainment Holding Limited, was issued 26,062,294 shares, or 93.8% of the offering, and is now the majority owner of the Company with approximately 64.8% of its outstanding shares of common stock. The Company's officers and members of its Board of Directors collectively subscribed for a total of 1,732,756 shares by exercising their basic and oversubscription privileges. They were issued a combined total of 1,634,679 shares of EGT common stock, or 5.9% of the offering.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "We are pleased to announce the completion of a successful rights offering and thank all those participating stockholders, particularly Melco whose support has been instrumental in this process. This offer is an important step in our plan to improve our capital resources and liquidity as we seek to secure meaningful new gaming projects in our target markets. We believe that the strong participation by Melco as well as our Board of Directors in this offering demonstrates their continued support of 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 in Pan-Asia engaged in the leasing of electronic gaming machines on a revenue sharing basis to the gaming industry in Cambodia and the Philippines and the development and operation of casinos and gaming venues in the Indo-China region under its "Dreamworld" brand. The Company also manufactures and sells RFID and traditional gaming chips and plaques to major casinos under its "Dolphin" brand.

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 expectations for the Company's ability to secure new casino and gaming projects and fund those projects. 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, risks related to the Company's gaming projects and its ability to identify and successfully develop additional projects, acquire additional capital as and when needed, adapt to potential changes in gaming policies and political stability in the countries in which the Company operates and those other risks set forth in the Company's annual report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014 and subsequently filed quarterly reports on Form 10-Q. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims 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.