he firm is implementing the reverse stock split to maintain compliance with regulatory agencies, its recent financing transactions and NASDAQ listing requirements. Following the reverse stock split the company will have approximately 10.8 million shares issued and outstanding, inclusive of 2.1 million shares issuable pursuant to the convertible note debenture with International Game Technology and approximately 0.8 million shares issuable under option and warrant agreements.
The preceding calculation does not include any contingent warrants or shares that may be issuable to Private Equity Management and IGT. Following the reverse stock split, the number of total authorized shares of the Company’s common stock will be reduced to 12.5 million shares.
Separately, the company announced that, since August 18, 2008, it has repurchased 139,300 shares of its common stock for total consideration of approximately us$ 100,000 in open market transactions pursuant to the share repurchase plan initially authorized in 2002.
Prior to August 18, 2008, the company had approximately us$ 1.5 million remaining under this share repurchase plan. Additional purchases may be made from time to time, as and when permissible under applicable securities law, in the open market at prevailing market prices, through 10b5-1 programs or in privately negotiated transactions. The timing and actual number of shares to be purchased will depend on market conditions and other factors. Purchases may be discontinued at any time.