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23rd December 2011

TransGaming in Final Negotiations to Make Acquisition

transgamingTransGaming Inc., a leader in the multiplatform deployment of interactive entertainment, has announced that it is in the late stages of negotiations to acquire the interactive TV assets of a leading games company, including its distribution contracts with service providers and extensive content licenses.

Management expects that a final agreement with respect to the transaction, which is subject to the approval of the TSX Venture Exchange and the consent of a third party, will be reached shortly. It anticipates the closing of the transaction to occur in early January 2012.

In order to sustain its working capital following the closing of the acquisition, TransGaming has also arranged a debt financing of CAD $3.5 million from Best Funds. The loan will carry a 30-month term with a coupon of 16%. In addition, Best Funds will be issued warrants to acquire 2.3 million shares in TransGaming at an exercise price of $0.75. The warrants will expire 2 years after the 30-month term.

TransGaming will provide further details when an agreement is formally reached, the transaction closes and the financing is drawn upon. TransGaming will schedule a conference call for analysts and investors in early January.

This entry was posted on Friday, December 23rd, 2011 at 8:53 am and is filed under Business News, National News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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