TORONTO, March 18, 2015 /CNW/ - The Intertain Group Limited ("Intertain" or the "Company") (TSX: IT) provided an update today regarding its acquisition of the Jackpotjoy, Starspins and Botemania brands (the "Jackpotjoy Acquisition"), which is set to close during the week of April 6, 2015.
Intertain's previously announced US$352.5 million senior secured credit facilities (the "Debt Facility"), consisting of a US$335.0 million term loan and a US$17.5 million revolving credit facility, is fully committed and the Company will use the Debt Facility to finance a portion of the initial purchase price for the Jackpotjoy Acquisition.
Intertain also announced today that John Kennedy FitzGerald, CEO of the Company, and two members of Intertain's board of directors purchased 106,700 common shares of the Company on March 17, 2015. For further information, please see the Company's SEDI profile at www.sedi.ca. In addition, Intertain senior management and certain board members participated in the Company's previously announced equity financing of subscription receipts (the net proceeds of which will also be used to, among other things, finance a portion of the initial purchase price for the Jackpotjoy Acquisition), purchasing 916,864 subscription receipts in February 2015. The principals of Vera & John also purchased a total of 600,000 subscription receipts of the Company.
In addition, the principals of Vera & John received more than 2.6 million Intertain shares in connection with the purchase of Dumarca Holdings PLC in December 2014, and the principals of Gamesys Limited ("Gamesys") will be issued more than 2.4 million Intertain shares as part of the consideration for the Jackpotjoy Acquisition and the Gamesys Managing Director will join the Intertain board of directors. Management of Intertain believes that the meaningful stakes that they hold in Intertain more closely align their interests with those of the Company's shareholders.
"Senior management and the board have taken the opportunity to reaffirm their belief in Intertain's vision and long-term strategy," commented John Kennedy FitzGerald, CEO of Intertain. "With the completion of the Jackpotjoy acquisition, Intertain will continue to build long-term shareholder value."
Intertain is an online gaming company that provides entertainment to a global consumer base. Intertain currently offers bingo and casino to its customers using the InterCasino www.intercasino.com, Costa www.costabingo.com, Vera&John www.verajohn.com and other brands. For more about Intertain please visit www.intertain.com.
This press release contains forward looking information within the meaning of Canadian securities laws, including with respect to the availability of funds under the Debt Facility, and closing of the Jackpotjoy Acquisition. This forward looking information is based on certain assumptions, which the Company considers to be reasonable, based on information currently available; however, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, limited operating history, the fact that on-line gaming is a heavily regulated industry and that such regulation is subject to change, competition from other providers of online gaming services, the possibility that the Company be unable to successfully integrate any proposed assets to be acquired, the risks associated with international and foreign operations and the risks discussed under the heading "Risk Factors" in Intertain's annual information form for the year ended October 31, 2013, Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
The foregoing factors are not intended to represent a complete list of the factors that could affect the Company and the Offering. The Company does not intend or undertake to publically update any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE The Intertain Group Limited
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