Entertainment Gaming Asia seeks funds for expansion

Entertainment Gaming Asia said it’s granting investors subscription rights to purchase up to 27,777,673 shares of common stock to raise funds for future expansion.
Shareholders will receive 0.92278 of a subscription right for each common share held. The rights may only be exercised in whole numbers and each whole right allows investors to buy one share at a price of $0.54 per share.
The shares closed up 3.7 percent in New York on Wednesday at $0.55 a share.
“We are undertaking the present rights offering for purposes of funding additional casinos and gaming clubs and slot participation contracts as well as for general working capital requirements for our Dolphin operations. We are currently conducting a survey and analysis of potential gaming projects and have commenced preliminary discussions with third parties with regard to such projects,” the company said in an SEC filing.
It said if it’s unsuccessful in raising the cash through a rights offering, it may consider other forms of fund raising, including equity sales and debt financing.