TORONTO, ON--(Marketwired - April 06, 2017) - Gaming Nation Inc. (TSX VENTURE: FAN) ("Gaming Nation" or the "Company") announces today the conversion of the convertible debenture held by Continental General Insurance Company ("Continental") a wholly-owned subsidiary of HC2 Holdings 2, Inc. ("HC2").
Continental made an investment in the Company pursuant to the purchase of an unsecured convertible debenture issued by the Company (the "Debenture") dated April 6, 2015 in the principal amount of CDN$20 million. The Debenture earned 6% interest in-kind and converted into Gaming Nation Inc. common shares ("Common Shares") as of the maturity date of April 6, 2017.
Pursuant to the conversion of the principal amount and accrued interest, Continental acquired 9,987,556 fully paid Common Shares at a rate of $2.25 per Common Share, being 22.94% of the Company's issued and outstanding Common Shares. As a result of the conversion, Continental has become a Control Person (as defined in the policies of the TSX Venture Exchange). HC2 also currently holds 28,126,068 warrants entitling it to acquire the same number of Common Shares at any time until April 6, 2020.
About Gaming Nation Inc.:
Gaming Nation Inc. (TSX VENTURE: FAN) provides technology and information platforms to the sports and entertainment industry. The Company's platforms include 5050 Central, an electronic real-time raffle system, BD Sport Group, providing in-stadium betting in the UK football market, and sports information websites Fantasy Guru, FantasyGuruElite and Pick Nation.The head office of Gaming Nation is located at 400 - 50 Minthorn Blvd., Thornhill ON L3T 7X8.
For more information visit, www.gamingnationinc.com.
This press release contains forward looking information within the meaning of Canadian securities laws concerning the business, operations and financial performance of the Company and BD Sport's businesses. Forward looking information includes but is not limited to statements with respect to revenues, EBITDA, free-cash-flow, earn out payments and accretive earnings. This forward looking information is based on certain assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number or risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to market, currency, operational liquidity, changes in economic conditions, interest rates or tax rates, the fact that gaming is a heavily regulated industry and that such regulation is subject to change, competition from other providers, the possibility that the Company will be unable to successfully integrate any proposed assets to be acquired, the risks associated with international and foreign operations and the risks. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
The foregoing factors are not intended to represent a complete list of the factors that could affect the Company. The Company does not intend or undertake to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
Neither the 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.