TransGaming Inc.

TransGaming Inc.

February 08, 2010 08:00 ET

TransGaming Inc. Announces Intel Capital’s Conversion of Notes Into Common Shares and Confirmation of 10% Rolling Stock Option Plan

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2010) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") announced today that on February 5, 2010 Middlefield Ventures, Inc. ("MVI"), a lending affiliate of Intel Capital, elected to exercise its right to convert the entire principal amount of the US$500,000 under three convertible notes into TransGaming common shares.

Under the terms of the original investment by Intel Capital (the details of which are in the press release dated September 24, 2009) one of the notes (for US$150,000) and 272,727 warrants to purchase common shares remained in escrow pending the completion by the Company of certain milestones, primarily related to the development of certain technologies. Today the Company also announced that the milestones had been met and the note, the proceeds thereof, and the warrants had been released from escrow.

Consistent with the terms of the notes, TransGaming issued 1,812,881 common shares to MVI, at a conversion rate of CDN$0.295 per common share, as full and final settlement of the principal amount outstanding under all of the notes. TransGaming and Intel Capital have also agreed that TransGaming pay MVI $8,500 in full satisfaction of the accrued interest on the notes.

In addition, the board of directors of TransGaming have decided to keep the number of options available for issuance under the company's stock option at a rolling 10% of the issued and outstanding shares of the company in spite of seeking and obtaining shareholder approval in September 2009 to increase the number to 15% of the issued and outstanding shares of the company.

Contact Information