Jackpot Digital Inc. has warned its revenues will be negatively impacted to a tremendous extent as it makes most of its money from from licensing the company’s Electronic Table Game (“ETG”) products to the cruise industry.
Customer’s include Carnival Corporation, Royal Caribbean International and Virgin Voyages, the company said.
“Furthermore, even when operations resume, the company expects future revenues generated from the cruise segment of its business to decline from previous levels for a reasonable period of time,” the company said, in a press release. “To face the very daunting challenges of the immediate future, the company is actively cutting costs wherever possible and has also started the requisite applications for relief from the appropriate federal government agencies. The company has also commenced discussions with its debt holders to extend the maturity of the company’s current debt.”
In addition to the above, Jackpot also said has been forced to take other necessary and drastic steps to ensure its survival, with the hope that it can fully recover in due course.
In order to attract an immediate and necessary financing to continue operations, the company intends to conduct a 10-for-1 (10:1) share consolidation, which would leave the Company with approximately 12,919,312 post-consolidation common shares outstanding. This 10-for-1 (10:1) share consolidation is expected to occur on or about the week of April 20, 2020.