Parlay Entertainment Inc.

Parlay Entertainment Inc.

September 02, 2011 15:17 ET

Parlay Entertainment Announces Completion of Asset Sale

OAKVILLE, CANADA--(Marketwire - Sept. 2, 2011) - The Board of Directors of Parlay Entertainment Inc. ("Parlay" or the "Company") (TSX VENTURE:PEI), a developer of online gaming technologies, announced today that it, in conjunction with its Trustee BDO Canada Limited ("BDO"), have now completed the sale of a majority of Parlay's assets. The purchaser was M Projects Assets S.A. ("MProjects"), which was the original stalking horse bidder and the lending party to the previously announced Credit Agreement.

Despite a rigorous sales and marketing process, no alternative bids were received within the court ordered bidding deadline of July 18, 2011. As such, an Approval and Vesting Order was issued on August 2, 2011 and the transaction closed on September 1, 2011. Now that the transaction has closed, Parlay and BDO will proceed with a liquidation proposal, which they expect will be filed on or around September 6, 2011, and which will be the subject of a creditor meeting sometime in late September, 2011. As part of the liquidation proposal, the Company is reviewing opportunities for the public vehicle, which will either take the form of an outright sale; reverse merger or wind-up.

MProjects has advised the Company that it will operate, invest in and grow Parlay's business and it will continue to operate under the business names Parlay Games and Parlay Entertainment. The transaction and the restructuring will be transparent to Parlay's existing business lines and its customers in all jurisdictions.

The Board of Directors also advises that Parlay is now in full compliance with all financial reporting requirements with Canadian securities regulators. As such, the Company intends to apply for a partial revocation of the cease trade order previously issued, which currently impacts on the trading of its shares.

The Board of Directors will update shareholders on both matters as soon as it is appropriate to do so.

About Parlay Entertainment

Parlay Entertainment Inc. is one of the pioneers and technology leaders in the online gaming industry. As the inventor and holder of Internet bingo patents, Parlay was the first company in the world to develop and deploy a commercial Internet bingo product. Parlay's head offices are located in Oakville, Canada. Parlay is licensed or certified to conduct business in Alderney, the United Kingdom and the Isle of Man.

This document may contain statements about expected future events and/or financial and operating results of Parlay Entertainment Inc. that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this release.

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