HONG KONG, Dec. 28, 2016 /PRNewswire/ -- Entertainment
Gaming Asia Inc. (NASDAQ: EGT) (the "Company") announced today that
it has sold gaming assets in Cambodia, including its 278 electronic gaming
machine (EGM) seats placed in Dreamworld Club (Poipet), 72 EGM
seats held in Cambodia storage and
gaming equipment spare parts and accessories, to the venue owner of
Dreamworld Club (Poipet) for cash proceeds of $900,000. The Company received the cash proceeds
and the sale closed on December 23,
2016. The Company also announced that on December 21, 2016, the Company and the venue and
land owners of Dreamworld Club (Poipet) entered into an agreement
to terminate, effective December 1,
2016, the machines operation and participation agreement
among the parties dated April 2,
2012.
In accordance with the terms of the machines operation and
participation agreement, the ownership of the Dreamworld Club
(Poipet) building, which was constructed and paid for by the
Company on the property of the land owner of Dreamworld Club
(Poipet), reverted to the venue owner upon termination of the
agreement.
Dreamworld Club (Poipet) was the last of the Company's EGM
leasing operations in Cambodia.
The Company's remaining EGM leasing operations consist of two
venues in the Philippines.
Clarence Chung, Chairman and
Chief Executive Officer of Entertainment Gaming Asia, commented,
"This asset sale is part of our continued efforts to refine our
business operations and position ourselves for new opportunities.
The termination of the Dreamworld Club (Poipet) operations should
have a minimal impact on our future cash flow from operations and
provides additional resources to direct toward the execution of a
new potential growth strategy, which involves the entrance into new
areas such as film and related businesses."
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 the Philippines. The
Company is also developing a free to play online social casino
gaming platform focused on 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 Company's strategy to
refine its existing business operations and the Company's ability
to secure and execute on 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 Company's strategy to refine its existing business
operations and to secure and execute on new growth opportunities
and those other risks set forth in the Company's respective annual
reports on Form 10-K for the year ended December 31, 2015 filed with the SEC and
subsequently filed reports. The Company cautions readers not to
place undue reliance on any forward-looking statements and it 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.