Amaya to redeem its outstanding convertible debentures - Amaya to initiate a
normal course issuer bid for its common shares
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
MONTREAL, Jan. 8, 2013 /CNW Telbec/ - Amaya Gaming Group Inc. ("Amaya" or the
"Company") (TSX Venture: AYA) announced today that its board of directors,
after having assessed the alternatives with respect to retiring Amaya's
outstanding 10.5% convertible unsecured subordinated debentures due April30,
2014 (the"Convertible Debentures"), has authorized Amaya to issue a
redemption notice to all holders of listed Convertible Debentures (Symbol:
AYA.DB) announcing that it will redeem for cash all of its Convertible
Debentures on February 7, 2013 (the"Redemption Date"), in accordance with
the redemption rights attached to the Convertible Debentures.
In accordance with the debenture indenture dated as of January 17, 2012 (the
"Indenture") between the Company and Computershare Trust Company of Canada
governing the Convertible Debentures, the redemption price for each $1,000
principal amount of Convertible Debentures will be $1,028.48 (the"Total
Redemption Price"), being an amount equal to the aggregate of $1,000 plus
accrued and unpaid interest as of the Redemption Date, but excluding the
Redemption Date, less applicable withholding taxes, if any.
The Total Redemption Price will be payable upon presentation for surrender of
Convertible Debentures by registered holders on or after the Redemption Date
at the corporate trust office of Computershare Trust Company of Canada, 1500
University Street, 7(th) Floor, Montréal, Québec, H3A 3S8. CDS Clearing
Depository Services Inc. will present for surrender the global certificate to
Computershare Trust Company of Canada representing the Convertible Debentures
held by the non-registered holders of Convertible Debentures. All Convertible
Debentures redeemed will be cancelled and the Convertible Debentures will be
delisted from the TSX Venture Exchange.
The aggregate redemption amount for the Convertible Debentures will be paid
for with cash from Amaya's working capital.
As at January 7, 2013, and before the processing of $7,432,000 of Convertible
Debentures tendered for conversion, there were an aggregate principal amount
of $23,586,000 of Convertible Debentures outstanding.
Holders of Convertible Debentures may, until the close of business on the last
business day immediately preceding the Redemption Date, convert their
Convertible Debentures into common shares of Amaya (the"Common Shares") in
accordance with the terms of the Convertible Debentures, namely approximately
308 Common Shares will be issued for each $1,000 principal amount of
Convertible Debentures converted representing a conversion price equal to
$3.25 per Common Share.
Subject to regulatory approval, Amaya also intends to proceed with a normal
course issuer bid ("NCIB") of part of its issued and outstanding Common
Shares. Amaya intends to purchase for cancellation up to 5,650,000 Common
Shares, representing, to the knowledge of Amaya, less than 10% of the listed
Common Shares held by shareholders that are not insiders, promoters or
associates or affiliates of an insider of Amaya. As at January 7, 2013, Amaya
had 79,676,950 Common Shares issued and outstanding and as at January 8, 2013
Amaya will have 81,963,719 Common Shares issued and outstanding including
2,286,769 Common Shares to be issued upon the conversion of the $7,432,000
Convertible Debentures tendered but not yet processed. Purchases pursuant to
the NCIB will be made from time to time by Canaccord Genuity Corp. on behalf
of the Company through the facilities of the TSX Venture Exchange at market
prices. Common Shares purchased will be paid for with cash from Amaya's
working capital. All Common Shares purchased pursuant to the NCIB will be
Amaya wishes to reduce the number of Common Shares issued and outstanding,
including those Common Shares that may be issued further to the conversion of
the Convertible Debentures, in order to enhance shareholder value.
Amaya has not purchased any of its outstanding Common Shares within the
previous 12 months. Purchases in any given month are restricted to a maximum
of 2% of the total number of outstanding Common Shares. There is no minimum
number of Common Shares that must be purchased by the Company under the NCIB.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy securities in the United States, or for the account or
benefit of U.S. persons (as such term is defined in Regulation S under the
United States Securities Act of 1933, as amended).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Founded in 2004, Amaya Gaming Group Inc. is a technology based gaming provider
for the regulated gaming industry. An expansive global organization, present
in North America, Latin America, Europe and Asia, Amaya is an innovator in the
gaming world. Headquartered in Montreal, Canada, Amaya provides a host of
services and solutions that range from: online and mobile gaming casino games
and platforms, traditional and mobile lotteries, networked electronic gaming
systems, hospitality in-room entertainment systems, management systems,
content suites, advisory and management services, and integrity monitoring and
auditing systems for the regulated gaming markets.
Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express management's
expectations or estimates of our future performance 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 and competitive
uncertainties and contingencies. Investors are cautioned not to put undue
reliance on forward looking statements. Except as required by law, Amaya does
not intend, and undertakes no obligation, to update any forward-looking
statements to reflect, in particular, new information or future events.
For more information please visitwww.amayagaming.com orwww.amayaonline.com.
Mr. David Baazov President and Chief Executive Officer Amaya Gaming Group
Inc. North America: 1-866-744-3122 Worldwide: +1-514-744-3122
SOURCE: AMAYA GAMING GROUP INC.
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CO: AMAYA GAMING GROUP INC.
NI: CNO 2523
-0- Jan/08/2013 12:30 GMT
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