Business
Jackpot Announces Update on Proposed Spin-Out for Online Gaming Business
VANCOUVER, BC / ACCESSWIRE / March 26, 2021 / Jackpot Digital Inc. (the " Company " or " Jac...
About this update from Jackpot Digital Inc.
[{"type":"text","content":"Jackpot Announces Update on Proposed Spin-Out for Online Gaming BusinessVANCOUVER, BC / ACCESSWIRE / March 26, 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 release of February 19, 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\"). 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. It is anticipated that the ratio of Jackpot Shares to Spinco Shares will be determined by April 8, 2021. Once the ratio of Jackpot Shares to Spinco Shares has been set, the Company will issue a news release.As part of the Spin-Out, Jackpot will distribute the Spinco Shares to its registered shareholders as of the record date by way of a return of paid-up capital, and each registered shareholder on the record date will receive one Spinco Share once the ratio of Jackpot Shares to Spinco Shares has been determined. The record date will be on or about April 30, 2021.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 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 ...