PRIME TABLE GAMES SALE

Taken from the Prime Table Games website.....

"Sale of virtually all Prime Table Games assets to Galaxy.

We are pleased to announce that we have now sold all our casino house-banked game assets to a US public company Galaxy Gaming Inc (GLZX). We will be contacting all clients in the near future with more details. View the Galaxy Press Release.

The only game assets that we are retaining relate to PTG Poker. The PTG Poker assets are based on player against player card room poker and are in a different market to the casino house-banked game assets. View a summary of PTG Poker.

We intend to become more active in our contribution towards improving regulation of gambling. Firstly, we will be devoting more resources to our UK focussed Fairer Gambling Campaign. Secondly, we will become active in addressing the flaws in US gambling regulation. We will shortly be providing information on that subject at Flawed US Gambling Regulation."

And from the Galaxy website.....

"Galaxy Gaming Acquires Prime Table Games’ Assets

Historic $23 Million Acquisition is Industry’s Second Largest LAS VEGAS, October 3, 2011 (GLOBE NEWSWIRE) --

Galaxy Gaming, Inc., announced today that it has acquired the casino table game assets and intellectual property portfolio of Prime Table Games LLC and Prime Table Games UK. Included in the $23,000,000 acquisition are over 20 different table games, including 21+3, Two-way Hold’em and Three Card Poker which are currently played on approximately 500 tables in 200 casinos in the United States, the United Kingdom and in the Caribbean. (Three Card Poker rights are limited to the British Isles.) The intellectual property portfolio includes 36 patents, 11 patents pending, 96 worldwide trademark and design registrations and 47 domain name registrations. Besides land-based casino table games, the acquisition, which is subject to customary regulatory approvals, includes video slot and internet gaming intellectual property. This transaction comprises the second largest acquisition in the table game industry after Mikohn Gaming’s acquisition of Progressive Gaming in 1998 for $35 million.

“In the gaming industry, ‘content is king’ and I have long considered Derek Webb of Prime Table Games to be the premier designer of casino table games,” commented Robert Saucier, Galaxy Gaming’s Chief Executive Officer. “To combine his extensive game collection with ours, provides us with a truly comprehensive portfolio and a critical leading edge in our quest to be a major supplier of table games and table game technology to casinos worldwide.”

As a result of the transaction, Galaxy Gaming’s recurring revenue will nearly double beginning with the fourth quarter of 2011. The transaction also positions the Company as the number one provider of table games in the United Kingdom and further expands its presence in the Caribbean. “Our strategic focus is on building recurring revenues,” declared Mr. Saucier. “This acquisition is 100% accretive and is exactly on target with that mission.”

Derek Webb stated, “As a shareholder of Galaxy Gaming, I have witnessed their commitment to increasing their distribution network and developing of cutting edge technology associated with table games. I believe that more than any other company, they will be able to fully leverage these assets to their fullest extent.” Galaxy will be exhibiting several of these games and other products at the upcoming Global Gaming Expo (G2E) to be held October 3-5 at the Sands Expo Convention Center in Las Vegas (Booth #1617). “Coming on the heels of our announced acquisition of table games from Lakes Entertainment last week, this acquisition further adds to the excitement going into the world’s largest gaming exposition,” added Mr. Saucier. “After we catch our breath from exhibiting at G2E, we expect to schedule an investor conference call to provide our supporters with additional details and color on these recent events as well as recap our results from G2E.”

This is a needed shot in the arm for Galaxy. Derek Webb was at odds with Shufflemaster.

Wow!!

I just took a look at Galaxy's financials and best I can tell they have $9,000 of book equity and $175,000 in cash as of June 30, 2011. This is a $23 million acquisition by a public traded company with a total market captalization of under $10 million. That means you can buy the whole company for $10 million!

Wonder how the financing for the $23 million acquisition is being financed?

This along with the Lakes Entertainment deal at last week (don't know how much that was for) is going to really leverage Galaxy. They are buying cash flow from installations apparently all with debt. I am sure someone smarter than me has run the numbers to make sure the debt can be serviced with new licensing fees acquired.

These new games certainly upgrade their portfolio of game offerings which is a big plus for them going forward.

Quote: Paradigm

Wow!!

I just took a look at Galaxy's financials and best I can tell they have $9,000 of book equity and $175,000 in cash as of June 30, 2011. This is a $23 million acquisition by a public traded company with a total market capitalization of under $10 million. That means you can buy the whole company for $10 million!

The margins on the reoccurring revenue are huge (+/- 90%) but with negative EBITDA and already 1.5MM in debt they don't have much room for error. Looked at the SEC filings and didn't see where they raised capital but my guess is they found a small market merchant bank willing to make a direct equity investment or found some private placement convertible preferred or something. How they are paying for it is an odd thing to leave out. The most recent quarterly filing does make note of the fact that they will need to raise equity to acquire intellectual property and doesn't mention using debt. Bulletin board stocks don't have the best flow of information, you can always call their IR person and ask.

Agree with you Scotty & 9/30 Q filing will be an interesting one.

As far as Bulletin board gaming stocks, I prefer DEQ Systems over Galaxy. They have some cash and seem to be stabilizing their revenues after the Stations BK and a bad acquisition issue that appears to be behind them.

With EZ Bacc & EZ Pai Gow along with G3 technology, they seem to have the pieces in play to keep moving forward despite the recent action in the stock.

Quote: Paradigm

Wow!!

I just took a look at Galaxy's financials and best I can tell they have $9,000 of book equity and $175,000 in cash as of June 30, 2011. This is a $23 million acquisition by a public traded company with a total market captalization of under $10 million. That means you can buy the whole company for $10 million!

Wonder how the financing for the $23 million acquisition is being financed?

This along with the Lakes Entertainment deal at last week (don't know how much that was for) is going to really leverage Galaxy. They are buying cash flow from installations apparently all with debt. I am sure someone smarter than me has run the numbers to make sure the debt can be serviced with new licensing fees acquired.

These new games certainly upgrade their portfolio of game offerings which is a big plus for them going forward.

Does this put Galaxy in a position to raise their fees for table licenses, or increase their percentage of the hold due to decreased competitive offerings?

Wouldn't think so as the games themselves should drive the lease rate. Don't believe they ever participate in the "hold" although one article I read seemed to indicate that they did. That would surprise me if true.

They are in no better position than Prime was to increase the lease rate on a game. Shufflemaster, DEQ, Gaming Network are all still out there as competitors. Lots of choices in games, so the price is going to depend on how badly a casion wants any particular game on the floor.

Quote: THESWEENEY

Taken from the Prime Table Games website..... And from the Galaxy website.....

"Galaxy Gaming Acquires Prime Table Games’ Assets

Historic $23 Million Acquisition is Industry’s Second Largest LAS VEGAS, October 3, 2011 (GLOBE NEWSWIRE) --

Derek Webb stated, “As a shareholder of Galaxy Gaming, I have witnessed their commitment to increasing their distribution network and developing of cutting edge technology associated with table games. I believe that more than any other company, they will be able to fully leverage these assets to their fullest extent.”

May be Derek was paid by GLXZ shares. At 0.20 per share, Derek got a full load of the shares.

In related news:

Galaxy Gaming chief accuses bank of ‘bullying tactics’ The CEO of Las Vegas-based casino supplier Galaxy Gaming Inc. today accused Bank of America of “bullying tactics” that have caused unnecessary scrutiny by gaming regulators, and he reported that Galaxy is countersuing the bank in a dispute over a $1.1 million loan.

GLXZ just reported a great quarter on 11/13 and there was one major trade by the CEO only 3 weeks ago - see Yahoo.

Nov 4, 2012 SAUCIER ROBERT B.Officer 583,333 Indirect Purchase at $0.15 - $0.2 per share. N/A

Quote: UCivan

GLXZ just reported a great quarter on 11/13 and there was one major trade by the CEO only 3 weeks ago - see Yahoo.

Nov 4, 2012 SAUCIER ROBERT B.Officer 583,333 Indirect Purchase at $0.15 - $0.2 per share. N/A

I don't follow them that closely anymore, although it appears that once they pay off the debt to PTG, they could really do well. That's a few years off, though. In the meantime, 21+3 seems to be doing quite well, although not sure how much per table they get. DEQ also seems to be doing quite well, with their "EZ" products- go PaiGowDan!