TORONTO, ONTARIO--(Marketwired - April 18, 2016) - TransGaming Inc. (TSX VENTURE:TNG) announced today that it is undertaking significant cost reduction measures in order to preserve its cash resources as revenue growth has slowed in recent months. Beginning in May 2016, the Company plans to reduce its operational and administrative headcount by more than 50% and restructure its overseas offices, with total annualized operating expense savings of approximately $1.3 million. Existing MSO partners will continue to be serviced by the remaining personnel, however the Company will not invest in the deployment of new services in the connected TV space going forward.
"This was a difficult decision but a necessary one to ensure the ongoing viability of TransGaming," commented Dennis Ensing, CEO. "It is not easy to see our valued colleagues leave the Company. We want to express our deep appreciation for their contributions and to wish them well in the future."
"Our headcount reduction will be conducted systematically and, in parallel, we are reviewing a range of alternatives," added Mr. Ensing.
The Company is evaluating opportunities to enhance shareholder value, including the sale of GameTree TV business to a third party, while also considering strategic business transactions for the Company. There are no assurances that any strategic transactions will result in an incremental net benefit to shareholders.
About TransGaming:
Pioneers in Smart TV entertainment with over 15 years in the industry, TransGaming is dedicated to bringing high-quality games and innovative entertainment services to the living rooms of TV consumers worldwide. Based in Toronto, Canada, TransGaming has partnerships with every major brand of Smart TV manufacturer as well as a number of international pay TV providers.
GameTree TV, TransGaming's cloud-based game service, is accessible to the largest connected TV distribution footprint in the world - available to play on over 150 million connected TV's.
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Contact Information:
Ankit Patel
Vice President, Finance
ankit.patel@transgaming.com
www.transgaming.com