Vancouver-based Jackpot Digital Inc., the gaming software and electronic tables games manufacturer, announced Monday they have bought out all 52 Gaming Inc. royalty payments.
More specifically, the two parties agreed to wipe out all current royalty payments totaling US$375,000, of which $75,000 has been paid, and all future royalty payments, by issuing 3 million common shares of the company at a share price of $0.14, and 2 million share-purchase warrants, exercisable at $0.14 per share for a period of five years. The deal puts an end to all royalty-payment obligations owed to 52 Gaming.
“The strategic acquisition of 52 Gaming almost four years ago has provided intangible benefit and value,” said Jackpot President & CEO Jake Kalpakian in a statement. “Our buyout of the royalty in exchange for securities at double the current share price demonstrates 52 Gaming shareholders’ confidence in Jackpot’s future.”
Jackpot Digital Inc. develops, markets, and leases electronic dealerless table games (multi-player table games like poker, blackjack and baccarat) to casino operators in the cruise-ship industry and land-based regulated casino industry. Their products are all self-automated.
In 2017, Jackpot signed a deal with Carnival Corporation to supply their flagship product Jackpot Blitz to their fleet of cruise ships worldwide.
Jackpot announced Friday it had placed an order with its manufacturing partner for 100 additional Jackpot Blitz dealerless electronic poker tables. Production of the units will begin immediately.
Jackpot’s product is also complemented by a suite of backend tool for operators to better control and optimize their gaming business.
“We continue to focus on expanding our land-based casino footprint and we’re experiencing strong demand for Jackpot Blitz,” Kalpakian said. “Ordering 100 additional units positions us to capitalize on the growth we’re seeing in our order pipeline. We have license applications currently in progress in several North American jurisdictions. Upon receipt of the licensing approvals, we expect to accelerate deployment of our ETGs, expand our land-based footprint, and strengthen our recurring revenue base.”
In addition to Jackpot’s cruise-ship customers, which include Carnival, Princess, Holland America, AIDA, and Costa, Jackpot has announced land-based installations or orders in 12 states and territories in the United States and growing, including California, Kansas, Louisiana, Michigan, Minnesota, Mississippi, Montana, Nevada, Oregon, South Dakota, U.S. Virgin Islands, and Washington, as well as several international jurisdictions.
