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Entertainment Gaming Asia Inc.'s Dolphin Products Subsidiary Enters Into Binding Letter Of Intent To Sell Its Assets To Gaming Partners International Corporation

Letter of Intent

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 This Letter of Intent involves

ENTERTAINMENT GAMING ASIA INC. | Dolphin Products Limited | Entertainment Gaming Asia Inc | Gaming Partners International Corporation

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Title: ENTERTAINMENT GAMING ASIA INC.'S DOLPHIN PRODUCTS SUBSIDIARY ENTERS INTO BINDING LETTER OF INTENT TO SELL ITS ASSETS TO GAMING PARTNERS INTERNATIONAL CORPORATION
Date: 4/22/2016
Industry: Casinos and Gaming     Sector: Services

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Exhibit 99.1

 

For Immediate Release

 

CONTACTS:

Entertainment Gaming Asia Inc.

Traci Mangini, Interim Chief Financial Officer

tracimangini@EGT-Group.com

872/802-4227

 

Gaming Partners International Corporation

Gregory Gronau, President and Chief Executive Officer
702/384-2425

 

 

ENTERTAINMENT GAMING ASIA INC.’S DOLPHIN PRODUCTS SUBSIDIARY

ENTERS INTO BINDING LETTER OF INTENT TO SELL ITS ASSETS TO

GAMING PARTNERS INTERNATIONAL CORPORATION

 

Hong Kong – April 22, 2016 – Entertainment Gaming Asia Inc. (NASDAQ: EGT) and Gaming Partners International Corporation (NASDAQ: GPIC), today announced that EGT’s wholly-owned Hong Kong subsidiary, Dolphin Products Limited (“Dolphin”), has entered into a binding letter of intent (“LOI”) to sell its assets to GPIC. Dolphin is a leading manufacturer and distributor of RFID and traditional gaming chips and plaques under the Dolphin brand to major casinos in Asia and Australia. GPIC is a leading manufacturer and supplier of casino table game equipment, including gaming chips and plaques, to licensed casinos worldwide under the brand names Paulson, Bourgogne et Grasset, Gemaco and Bud Jones.

 

Under the terms of the LOI, GPIC will acquire the assets of Dolphin including fixed assets, raw materials and inventory and intellectual property for an estimated cash purchase price of approximately $5.9 million, subject to physical inventory counts at closing. The purchase price will be paid out in installments over a 24-month period after closing. In addition, GPIC will make earn out payments to EGT over the next five years based on a varying percentage of net revenues on certain select sales to specific Asian-based casinos. The asset sale represents Dolphin’s and EGT’s exit from the table game equipment business and, as part of the transaction, Dolphin and EGT will each agree not to engage in the manufacture of table game equipment in competition with GPIC.

 

The companies anticipate negotiating a definitive asset purchase agreement to effect the transaction consistent with the terms of the LOI and closing the transaction in May 2016. The closing of the transaction will be subject to GPIC’s satisfactory due diligence review of Dolphin and customary closing conditions to be set forth in the definitive asset purchase agreement. Accordingly, there is no guarantee the transaction will be consummated.

 

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