Pan-Asia focused Entertainment Gaming Asia Inc. has announced it will sell all 670 of its electronic gaming machine (EGM) seats placed at NagaWorld Casino to a third-party in Cambodia for US$2.5 million.
In a press release on Wednesday, the company said that prior to the sale, the company had leased EGMs to NagaWorld and that arrangement was terminated effective June 30, 2016 in connection with the sale transaction.
In the same announcement, the company also disclosed it has sold all 154 of its EGM seats placed at Leisure World VIP Slot Club in the Philippines to the venue owner for $750,000, of which 70 percent was paid on July 4, 2016 and 30 percent is payable on or before August 1, 2016. Prior to the sale, the Company had leased EGMs to Leisure World until June 30, 2016 when the contract expired.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "We continue our strategic efforts to refine our business operations and position ourselves for new potential opportunities. While the exit from two EGM leasing contracts will have a negative impact on our near-term cash flow, we believe the cash proceeds of the sales will further enhance our ability to pursue new growth opportunities that will fuel long-term growth for the Company."
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