/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES/
STONEY CREEK, ON, May 5, 2015 /CNW/ - Innova Gaming Group Inc. ("Innova") (TSX: IGG), which provides games, systems and tickets for the North American gaming industry, predominantly in the business to government lottery sector, announced today that it has successfully completed an initial public offering and secondary offering (the "Offering") of its common shares ("Shares"). Innova's Shares will commence trading today on the Toronto Stock Exchange under the symbol "IGG".
"We're extremely pleased to have completed our IPO. This is an important milestone that we anticipate will help us accelerate our development of new and innovative products, games and technologies for the large government lottery and gaming industries," said Innova's Chairman and CEO, Richard M. Weil.
In connection with the Offering, Innova issued and sold 3,750,000 Shares from treasury and 8,520,000 Shares were sold by Amaya Inc. ("Amaya"), at a price of Cdn$4.00 per Share. The Offering resulted in gross proceeds of Cdn$15.0 million to Innova and gross proceeds of Cdn$34.1 million to Amaya, for total aggregate gross proceeds of Cdn$49.1 million.
The Offering was made through a syndicate of underwriters led by Canaccord Genuity Corp. and including Cantor Fitzgerald Canada Corporation, Cormark Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd. and Clarus Securities Inc. (collectively, the "Underwriters").
Amaya has granted the Underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,840,500 Shares at a price of Cdn$4.00 per Share to cover over-allotments, if any, and for market stabilization purposes.
As of closing, Amaya owns 8,180,000 Shares, representing approximately 40% of the issued and outstanding Shares. If the over-allotment option is exercised in full, Amaya's retained interest will be reduced to 6,339,500 Shares, representing approximately 31% of the issued and outstanding Shares.
Osler, Hoskin & Harcourt LLP acted as Canadian counsel to Innova and Stikeman Elliott LLP acted as Canadian counsel to the Underwriters.
Further information relating to Innova and the Offering is set out in Innova's final prospectus dated April 28, 2015, which may be obtained on the SEDAR website at www.sedar.com under Innova's profile.
No securities regulatory authority has either approved or disapproved the contents of this press release. The Shares offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, within the United States (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States and any sale of the Shares within the United States, other than as set forth in the immediately preceding sentence, would be unlawful.
Innova is the owner of Diamond Game Enterprises, which designs, develops, produces, markets and services games, systems and tickets for the North American gaming industry, predominantly for the business to government (B2G) lottery sector. Its strategy is to enhance revenues of government-sponsored lotteries and other regulated operators by offering its unique "stay-and-play" products in traditional and non-traditional gaming venues. Its primary product is the LT-3, an instant ticket vending machine that dispenses tickets while simultaneously displaying the results of each ticket on a video monitor in an entertaining fashion. For more information, please visit www.innovagaminggroup.com.
Certain statements included herein, including those that express management's expectations or estimates of our future performance or future events, including with respect to the potential exercise of the over-allotment option granted to the Underwriters, the trading of the Shares on the Toronto Stock Exchange, and the development of products, games and technologies, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic, regulatory and competitive uncertainties and contingencies that could cause actual results or events to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements contained herein reflect Innova's current views with respect to future events, and except as required by law, Innova does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events, or otherwise.
SOURCE Innova Gaming Group Inc.
For further information: Richard Weil, CEO, 1 818-727-1690