NTN Buzztime announced that its board of directors is exploring and evaluating strategic alternatives focused on maximizing shareholder value, including, among other things, a potential acquisition of the company or its assets. "While we continue to focus on executing against our business plan, our board of directors believes now is the right time to explore strategic alternatives that have the potential to position the business for long-term success. Our board of directors is committed to fully evaluating appropriate strategic alternatives while simultaneously supporting the company's management and employees in their ongoing efforts to execute against our business plan," said chairman Jeff Berg. D. A. Davidson & Co. is serving as the company's financial advisor in connection with the strategic process. The company's board of directors has not set a timetable for the strategic process nor has it made any decisions relating to any strategic alternatives at this time, and no assurance can be given as to the outcome of the process. The company does not intend to disclose additional details regarding the strategic process unless and until further disclosure is appropriate or necessary.
On November 21, Northstar sent a letter to the Board of Directors of NTN Buzztime in which, among other things, Northstar expressed disappointment in the performance of the Board of Directors of the NTN Buzztime and specifically requested that the Board members purchase additional shares in the open market to demonstrate their faith in the company. Additionally, the letter requested that if a Board member is not willing to purchase additional shares, then the member should resign. If a Board member fails to purchase additional shares or fails to resign, North Star will vote against that members future nominations to The foregoing description of the Issuer Letter is qualified in its entirety by reference to the full text of NTN Buzztime Letter.
NTN Buzztime is rolling out a new series of self-published digital arcade games on Buzztime touchscreen tablets at over 2,700 locations. The first title, Buzztime Soccer, launched on June 1st alongside a $2,000 sweepstakes. Players entered by registering, then playing a round of Buzztime Soccer. Through the first week of July, there were over a half-million gaming sessions and the average time spent playing was about an hour.
NTN Buzztime announced that it has entered into a subscription agreement with certain investors relating to a registered direct offering in which the company would sell up to 345,772 shares of its common stock to the investors at a per share purchase price of $4.50. The net proceeds to NTN from the offering is expected to be approximately $1.4M after deducting estimated offering expenses, including placement agent fees. The offering is expected to close on or about June 29, 2018, subject to customary closing conditions. Roth Capital Partners is acting as exclusive placement agent for the offering.
Sean Gordon announced in a press release: "This is my third update regarding NTN Buzztime's upcoming 2018 shareholder meeting. Unfortunately, the Board continues to ignore its fiduciary duty to shareholders, even after 10 years of poor financial results, delayed product rollouts, and an 83% decline in its stock price. While I've extended numerous olive branches to help NTN over the years, the company's Board continues to protect the status quo and has ultimately chosen to waste NTN's resources on a proxy fight...Finally, as NTN works to comply with my demand letter, I would like to thank the numerous shareholders and other stakeholders who have reached out to me to discuss their concerns & interests regarding the success of NTN Buzztime."
NTN Buzztime received a letter from NYSE Regulation on April 26 stating it accepted the company's plan to regain compliance with Section 1003(a)(iii) of the NYSE American Company Guide by March 20, 2019. On March 20, NTN Buzztime received a letter from NYSE Regulation that the company is not in compliance with continued listing standards because it reported stockholders' equity of less than $6M as of December 31, 2017 and had net losses in five of its most recent fiscal years ended December 31, 2017. On April 26, NYSE Regulation accepted the company's plan of the actions it has taken or will take to regain compliance by March 20, 2019, and granted a plan period that extends through March 20, 2019 to regain compliance. The listing of the company's common stock on the exchange is being continued pursuant to an extension.