PokerTek converts $1.2 million in debt

PokerTek converts $1.2 million in debt to 1.4M shares in balance sheet-strengthening move

• On 4:21 pm EDT, Tuesday September 15, 2009

MATTHEWS, N.C. (AP) -- PokerTek Inc., which develops products for the casino and amusement sectors, said Tuesday it eliminated $1.2 million in debt by converting it into 1.4 million company shares.

Shares of PokerTek soared 26 cents, or 29.2 percent, to close at $1.15.

Three of the company's board members -- Lyle Berman, James Crawford and Lee Lomax -- participated in the debt conversion. Berman converted $500,000, Crawford converted $500,000 and Lomax converted $200,000 of outstanding loan principal to stock.

The shares were priced at 83 cents each, representing the stock's consolidated closing bid price on the Nasdaq on the trading day immediately preceding the transactions.

Mark Roberson, PokerTek's acting CEO and chief financial officer, said the deal, along with a recently announced investment by ICP Electronics and a private placement, significantly strengthens the company's balance sheet.

"As a result of these transactions, we have eliminated a majority of our outstanding long-term debt, reduced our future cash commitments, and enhanced our cash position," he said in a statement.