MONTREAL, Feb. 1, 2017 /CNW/ - Amaya Inc. (Nasdaq: AYA;
TSX: AYA) today announced that it has made an additional payment of
$75 million on its outstanding
deferred purchase price obligation for its acquisition of the
Rational Group in August 2014. As a
result, Amaya's remaining deferred purchase price obligation is
approximately $122.5 million. All
dollar ($) amounts are in U.S. dollars.
Amaya also made an approximately $6
million advance payment of three-months of non-refundable
late payment fees related to the unpaid balance of the deferred
purchase price, as required by its previously announced agreement
with the former owners of the Rational Group. Any additional fees
that may be incurred on the outstanding balance of the deferred
purchase price beginning on May 1,
2017 will be calculated at the rates outlined in the
original merger agreement (monthly rate equal to 30 day LIBOR plus
85 basis points until August 1, 2017
and then 30 day LIBOR plus 135 basis points thereafter). Amaya
intends to pay the outstanding balance over the course of 2017 from
unrestricted cash on its balance sheet and cash flow from
operations.
"The strong performance of our business allowed us to make
another meaningful payment on our pre-existing contractual
obligation to the former owners from cash on our balance sheet,"
said Rafi Ashkenazi, Chief Executive Officer of Amaya. "We remain
confident in our ability to pay the outstanding balance of the
deferred payment in a timely manner."
In early January 2017, Amaya
entered into an agreement with the former owners whereby the former
owners have agreed not to enforce during 2017 their right under the
original merger agreement to cause Amaya to use commercially
reasonable efforts to issue equity to finance any outstanding
balance of the deferred purchase price. In addition, under the
original merger agreement, the former owners agreed not to enforce
the payment of the deferred purchase price prior to the maturity or
repayment of the acquisition financing.
About Amaya
Amaya is a leading provider of technology-based products and
services in the global gaming and interactive entertainment
industries. Amaya ultimately owns gaming and related consumer
businesses and brands, including PokerStars, PokerStars Casino,
BetStars, Full Tilt, StarsDraft, and the PokerStars Championship
and PokerStars Festival live poker tour brands (incorporating the
European Poker Tour, PokerStars Caribbean Adventure, Latin American
Poker Tour and the Asia Pacific Poker Tour). These brands together
have more than 108 million registered customers globally and
collectively form the largest poker business in the world,
comprising online poker games and tournaments, live poker
competitions, branded poker rooms in popular casinos in major
cities around the world, and poker programming created for
television and online audiences. Amaya, through certain of these
brands, also offers non-poker gaming products, including casino,
sportsbook and daily fantasy sports. Amaya, through certain of its
subsidiaries, is licensed or approved to offer, or offers under
third party licenses or approvals, its products and services in
various jurisdictions throughout the world, including in
Europe, both within and outside of
the European Union, the Americas and elsewhere. In particular,
PokerStars is the world's most licensed online gaming brand,
holding licenses or related operating approvals in 17
jurisdictions.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking information
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable securities laws. Forward-looking
statements can, but may not always, be identified by the use of
words such as "anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "would", "should",
"believe", "objective", "ongoing" and similar references to future
periods or the negatives of these words and expressions. These
statements are based on management's current expectations and are
subject to a number of risks, uncertainties, and assumptions,
including market and economic conditions, business prospects or
opportunities, future plans and strategies, projections,
technological developments, anticipated events and trends and
regulatory changes that affect us, our customers and our
industries. Although Amaya and management believe the expectations
reflected in such forward-looking statements are reasonable and are
based on reasonable assumptions and estimates, there can be no
assurance that these assumptions or estimates are accurate or that
actual results will not differ materially from those expressed or
implied in forward-looking statements. Forward-looking statements
are inherently subject to significant business, regulatory,
economic and competitive risks, uncertainties and contingencies
that could cause actual events to differ materially from those
expressed or implied in such statements. Specific risks and
uncertainties include, but are not limited to, Amaya's plans and
ability to repay the deferred purchase price for the acquisition of
the Rational Group, and those identified under the heading "Risk
Factors and Uncertainties" in Amaya's Annual Information Form for
the year ended December 31, 2015 and
"Risk Factors and Uncertainties" and "Limitations of Key Metrics
and Other Data" in its Management's Discussion & Analysis for
the three and nine months ended September
30, 2016, each available on SEDAR at www.sedar.com, EDGAR at
www.sec.gov and Amaya's website at www.amaya.com, and in other
filings that Amaya has made and may make with applicable securities
authorities in the future. Investors are cautioned not to put undue
reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date hereof, and Amaya undertakes
no obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
SOURCE Amaya Inc.