Business
Jackpot Announces Terms of Spin-out Aimed at Entering the Regulated iGaming Markets
VANCOUVER, BC / ACCESSWIRE / June 16, 2021 / Jackpot Digital Inc. (the " Company " or " Jack...
About this update from Jackpot Digital Inc.
[{"type":"text","content":"Jackpot Announces Terms of Spin-out Aimed at Entering the Regulated iGaming MarketsVANCOUVER, BC / ACCESSWIRE / June 16, 2021 / Jackpot Digital Inc. (the \"Company\" or \"Jackpot\") (TSXV:JJ)(TSXV:JJ.WT.A)(TSXV:JJ.WT.B)(TSXV:JJ.WT.C)(OTCQB:JPOTF)(Frankfurt:LVH3)(Berlin:LVH3). Further to the Company's news releases of February 19 and March 26, 2021, Jackpot is pleased to announce additional terms of a proposed strategic reorganization of its business by way of a spin-out of its online gaming software assets (the \"Spin-Out\") to a newly incorporated subsidiary of Jackpot (\"Spinco\"). The Spin-Out will be completed as a plan of arrangement under the Business Corporations Act (British Columbia) (the \"BCBCA\"). The assets to be transferred to Spinco will include proprietary software Jackpot already owns as well as any additional software assets that may be acquired by Jackpot through a partnership or license arrangement before closing of the Spin-Out (the \"Online Gaming Assets\"). In consideration of the transfer of the Online Gaming Assets, Spinco will issue common shares (the \"Spinco Shares\") to Jackpot. Jackpot will distribute the Spinco Shares to its registered shareholders as of the record date of July 21, 2021. Each registered shareholder of Jackpot on the record date will receive one Spinco Share for every five common shares of Jackpot held by the registered shareholder. The number of Spinco Shares to be issued will be based on the number of outstanding Jackpot common shares (\"Jackpot Shares\") as of the record date.The purpose of the Spin-Out will be to leverage and monetize the Company's Online Gaming Assets and commercial relationships in the gaming sector. Management believes that holding the Online Gaming Assets in a separate public company offers benefits to the Company and to its shareholders, including:The Spin-Out will allow a more streamlined regulatory process by separating the Company's respective business operations.Spinco will be able to attract specialized management to run the online gaming operations.Jackpot can avoid dilution of Jackpot Shares held by its shareholders that would result from financing its online gaming business in the Company.Holding the Online Gaming Assets in Spinco will accelerate development of the online gaming business and product offerings.The Spin-Out is expected to maximize sha...