Business
Jackpot Digital Announces Corporate Update Relating to the COVID-19 Pandemic
VANCOUVER, BC / ACCESSWIRE / March 18, 2020 / Jackpot Digital Inc. (the "Company or "Jackpot...
About this update from Jackpot Digital Inc.
[{"type":"text","content":"Jackpot Digital Announces Corporate Update Relating to the COVID-19 PandemicVANCOUVER, BC / ACCESSWIRE / March 18, 2020 / Jackpot Digital Inc. (the \"Company or \"Jackpot\") (TSXV:JP)(TSXV:JP.WT)(TSXV:JP.WT.J)(OTCQB:JPOTF)(Frankfurt:LVH2)(Berlin: LVH2). The Company has been materially negatively impacted by the COVID-19 (Coronavirus) pandemic.Presently, the overwhelming majority of the Company's revenues are generated from licensing the Company's Electronic Table Game (\"ETG\") products to the cruise industry. The Company's customers include Carnival Corporation & PLC, Royal Caribbean International and Virgin Voyages. As a result of the cruise industry's voluntary and temporary pause/suspension, the Company's revenues will be negatively impacted to a tremendous extent. Furthermore, even when operations resume, the Company expects future revenues generated from the cruise segment of its business to decline from previous levels for a reasonable period of time.In regards to the land-based casino industry, into which the Company had been embarking an aggressive expansion, the Company's expansion plans will now be negatively impacted due to the temporary suspension/closures of most land-based casinos in North America and elsewhere due to the COVID-19 pandemic. The Company expects the resulting negative fallout and uncertainty in the land-based casino industry to severely impact its current business development pipeline and anticipated cashflows for the near to mid-term.To face the very daunting challenges of the immediate future, the Company is actively cutting costs wherever possible and has also started the requisite applications for relief from the appropriate federal government agencies. The Company has also commenced discussions with its debt holders to extend the maturity of the Company's current debt.In addition to the above, the Company has been forced to take other necessary and drastic steps to ensure its survival, with the hope that it can fully recover in due course.In order to attract an immediate and necessary financing to continue operations, the Company intends to conduct a 10-for-1 (10:1) share consolidation, which would leave the Company with approximately 12,919,312 post-consolidation common shares outstanding. This 10-for-1 (10:1) share consolidation is expected to occur on or about the week of April 20, 2020....