NTN Buzztime (NYSEAMERICAN:NTN) is in the news Monday after an asset sale announcement put NTN stock on a wild ride.
NTN Buzztime reveals in a news release that it plans to sell its “social entertainment, customer engagement, and advertising technology assets” to eGames.com Holdings. The company will sell these assets for $2 million in a deal set to close in Q4 2020.
NTN Buzztime notes that at the time of the deal’s announcement, it received a $1 million loan from eGames.com Holdings. This will go towards the $2 million cash payment that eGames.com Holdings is making to acquire the assets from NTN.
The deal also has eGames.com Holdings acquiring the other liabilities an parts of NTN Buzztime that it needs to handle assets in the sale. The sale is part of NTN’s reverse merger plan with Brooklyn Immunotherapeutics.
Once the deal is complete, NTN Buzztime CEO Allen Wolff will take over as the CEO of eGames.com Holdings. NTN also plans to sell off other assets to prepare itself for the reverse merger with Brooklyn Immunotherapeutics.
Wolff said this about the NTN Buzztime news.
“We believe that this asset sale will generate benefits for various stakeholders. By selling our game network, we will preserve our compelling in-venue experience that engages patrons for Buzztime customer venues. The cash purchase price we will receive will strengthen our balance sheet and improve our stockholders’ position with respect to the previously announced proposed reverse merger with Brooklyn Immunotherapeutics LLC.”
NTN stock started off strong Monday rising 33.7% but steadily fell throughout the day until it closed down 2%.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.