NTN Buzztime Inc (NYSE:NTN) agreed to sell entertainment and advertising assets to eGames for $2 million in cash.
The company out of Carlsbad, Calif., said the proposed transaction is expected to close in the fourth quarter of 2020 subject to the satisfaction or waiver of closing conditions in the purchase agreement.
In consideration for the purchase of the assets, eGames.com will pay $2.0 million in cash to Buzztime and will assume certain of Buzztime's other liabilities necessary to operate the business. On the date the parties entered into the asset purchase agreement, an affiliate of eGames.com loaned $1,000,000 to Buzztime, which will be applied toward the purchase price at the closing of the asset sale.
Said CEO Allen Wolff, :For over 35 years, Buzztime has amassed a loyal player and customer base and more recently expanded its offering with effective out-of-home advertising.
: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."
Buzztime "delivers interactive entertainment and innovative technology that helps its customers acquire, engage and retain its patrons. The company's tablets, mobile app and technology offer engaging solutions to establishments that have guests who experience dwell time, such as in bars, restaurants, casinos and senior living centers."
NTN shares jetted higher 63 cents, or 31.7%, to $2.62.
