Entertainment Gaming Asia Announces 1-for-4 Reverse Stock Split Effective June 12, 2012
6 days 12 hours 31 minutes ago - BusinessWire via Comtex
Entertainment Gaming Asia Inc. (NYSE MKT: EGT) ("Entertainment Gaming Asia" or "the Company"), a leading gaming company focused on emerging gaming markets in Pan-Asia, today announced a 1-for-4 split of the Company's common stock and corresponding decrease in the number of authorized shares of common stock effective prior to the market open on June 12, 2012 (the "Reverse Split"). The Company's shares will continue to trade on the NYSE MKT under the symbol EGT. In connection with this transaction, the Company has been assigned a new CUSIP number 29383V 206.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "We have elected to effect a reverse stock split as part of our efforts to better align the stock price with the Company's accomplishments and future growth potential. We believe this transaction will broaden our shareholder base and increase the appeal of the stock to institutional investors. Further, it should provide benefits to our shareholders by facilitating lower transaction costs and improved trading liquidity in the stock. The reverse split follows meaningful improvement in our financial performance and the implementation of our strategic growth plans, which we believe will increase the marketability of the stock and thereby enhance long-term shareholder value."
As of the effective date, every four shares of common stock of Entertainment Gaming Asia will automatically combine into one share of common stock. The Reverse Split will reduce the number of shares of outstanding common stock from approximately 120 million pre-split to approximately 30 million post-split. The number of authorized shares of common stock will be reduced from 300 million to approximately 75 million. Proportional adjustments will be made to the Company's stock options and equity compensation plans. All fractional shares will be rounded up to the nearest whole number. The Reverse Split will not negatively affect any of the rights that accrue to holders of Entertainment Gaming Asia common stock or options.
Shareholders as of the effective date with outstanding certificates will be asked to exchange them for new certificates representing the post-split number of shares with the new CUSIP number. The Company's transfer agent, Continental Stock Transfer & Trust Company, is the exchange agent for the Reverse Split and will distribute a letter of transmittal to shareholders with instructions on how to surrender old stock certificates. In the meantime, each outstanding certificate that prior to the Reverse Split represented shares of common stock of the Company will thereafter represent shares of common stock in the post-split amount. For more information on the Reverse Split, please visit www.egt-group.com/ReverseStockSplitFAQs.html