NEW YORK, NY / ACCESSWIRE / October 29, 2018 / Newgioco Group, Inc. ("Newgioco" or the "Company") (NWGI), a company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, is pleased to provide a detailed update on recent corporate initiatives and growth activities.
2018 Global Gaming Expo ("G2E"):
Newgioco attended the 2018 G2E held in Las Vegas, Nevada from October 8-11, 2018. At G2E, the Company demonstrated the newest release of its sports betting platform, ELYS, which is a one-stop sports betting solution for betting retailers. ELYS provides a fully automated and managed sports book, with an increased number of markets offered (both Pre-match and Live "in-game" betting), real-time risk monitor with risk acceptance and bet monitoring tools, virtual sports betting, multi-channel payment methods and integration with multiple casinos and slot content providers. Management believes that the launch of its complementary mobile betting application dedicated to improving the sport-bet user experience further establishes Newgioco as one of the top technology providers for business-to-business ("B2B") and business-to-consumer ("B2C") sports betting, gaming and casino operators.
Newgioco Group Initiates Plan to Enter U.S. Sports Betting Market:
With the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018, Newgioco recently announced its intention to enter the U.S. sports betting market. Newgioco aims to enter the U.S. gaming industry by combining its longstanding track record of success within Italy's highly regulated gaming market and introducing its convenient and customizable sports betting technology platforms to a select partner network of U.S. land-based licensed gaming operators.
"In preparation for the execution of our U.S. expansion plans, the Company has also started coding for (GLI-33) certification to launch U.S. operations in the near future. Newgioco is confident that its proven, powerful and efficient betting engine will resonate with casino operators in the U.S. when compared against platforms and products being offered by certain established competitors and early movers in the developing market. In our core Italian market and internationally, including in the U.S., we intend to launch the most advanced online betting technology with the latest in website coding fully integrated into our ELYS betting platform, featuring seamless gaming account and transaction processing for B2B operators. We expect to be an early mover with this innovative new technology," commented CEO of Newgioco, Michele Ciavarella.
Strong Organic Growth and Consolidation Opportunities in Italy:
Newgioco has the 20th largest share of the Italian online betting market (up from 30th three quarters ago), and currently reaches approximately 86,000 online user accounts, 1,000 web cafes, and 180 land-based gaming locations via three core distribution channels - Sporting Stores (agencies or arcades), Sporting Points ("corners"), and Virtual Reload Points ("shop", "web cafes" or "websites"), and is on track to exceed its 2018 projected turnover target of $300 million. The Company continues to focus on organic growth by improving its product, service and highly competitive game offerings within its Italian operating territories (offering more than 150,000 events per season and 90,000 events in Live mode), while exploring potential acquisition opportunities related to smaller Italian sports betting companies.
Continued Financial Strength & Performance:
On August 20, 2018, Newgioco announced its 2018 second quarter results. The report filed for the period ended June 30, 2018 reflects major highlights that included:
- Newgioco's fifth consecutive quarterly operating profits;
- Outstanding triple-digit group performance of almost 190% growth in operating income;
- Strong cash reserves at $6.8 million on June 30, 2018;
- GAAP revenue for the first half of 2018 increased 118.54% year over year to $17.4 million;
- Non-GAAP transactional sales of betting turnover for the first half of 2018 increased 86.33% to $190.6 million due to robust 2018 World Cup wagering;
- Strong growth in assets to $22.7 million strengthens the balance sheet;
- Substantial design and development work on a pipeline of new, innovative technologies; and
- Technological readiness for expanding into the U.S. sports betting market.
"Newgioco's operating results and product achievements are a testament of our team's ability to focus and execute on a strategy to solidify Newgioco's betting platform as a market leader in AI technology and operator-centered gaming architecture. Keeping with the hallmark of our business development philosophy, Newgioco is taking a sustainable and diligent approach to the quickly developing U.S. sports betting market. As such, we have gained valuable regulatory and deployment visibility for our U.S. business blueprint and remain focused on being an early mover with this exciting opportunity ahead," remarked Michele Ciavarella, CEO of Newgioco.
For the press release related to the Company's 2018 second-quarter results, visit:
Newgioco Group Strengthens Management Team:
During the third quarter of 2018, the Company announced several key additions to its leadership and management team as it prepares to initiate its U.S. expansion strategy and to list its shares on the NASDAQ stock exchange. New management appointments include the following:
Alessandro Marcelli was promoted to Chief Operating Officer; Alessandro has been instrumental in overseeing Newgioco's growth in Europe and will continue to provide direction on the Company's international operational initiatives.
Elizabeth J. MacLean, Vice President Finance and Accounting; Elizabeth is the former Global Lead for Financial Systems and Processes at Progressive Gaming International and held a number of senior positions at Honeywell International (HON-US) including; Global Implementation Leader for Honeywell Process Solutions; Director, Digital Works and Director, Business Development for Honeywell eVentures.
Ralph M. Garcea, Vice President Corporate and Business Development; Ralph was a top-ranked analyst and has held senior executive positions at major domestic and international banks and brokerage firms. He previously covered gaming industry names such as The Stars Group (TSG-US), NYX Gaming (SGMS-US), Jackpotjoy (JPJ-LSE), Innova Gaming and Pollard Banknote (PBL-T).
James Cardwell, Interim Chief Financial Officer; specialist in both SEC financial reporting and tax compliance and has served as interim CFO of VerifyMe, Inc. (VRME), CFO of S2BN Entertainment, Inc. and Sibling Entertainment, Inc.
Bill Mitoulas, Vice President of Communications and Investor Relations; Bill is the principal of Venture North Capital Inc., providing corporate finance and capital markets advisory services to publicly listed and private companies since 2011.
Michele Ciavarella, CEO of Newgioco, commented, "The collective strength and experience of the Newgioco management team and board of directors has greatly improved with these additions. Each of the new appointees brings years of experience and skill sets which will be instrumental to the Company's success as it looks to enter into the U.S. sports betting market. I am excited about executing our growth strategy, and welcome our new team members to the Newgioco family."
For the press release related to the appointment of new management members, visit:
Newgioco Appoints New Board of Directors:
Effective July 23, 2018 Newgioco announced the appointment of three new independent board members, Russel McMeekin, Harold Wolkin and William Rutsey. Each of the new directors brings a wealth of global experience across a variety of different industry groups along with extensive experience in gaming operations and strategy.
Brief biographical information of each newly appointed director is set forth below. For more detailed biographical information, please see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on July 27, 2018.
Mr. McMeekin is the former President, CEO and board member of Progressive Gaming International Inc. In addition, he is a former board member of the American Gaming Association and the Canadian Gaming Association. Mr. McMeekin currently serves as CEO, President, and co-founder of Universal mCloud Inc (MCLD-T).
Mr. Wolkin is the former EVP, Head of Investment Banking at Dundee Capital Markets. In addition, he previously served as Managing Director, Diversified Industries, Investment and Corporate Banking of BMO Capital Markets ("BMO") and VP and Director, Equity Research Analyst of BMO and BMO Financial Group. Mr. Wolkin currently serves on numerous boards and committees, including Baylin Technologies (BYL-T), Cipher Pharmaceuticals (CPH-T), and Diamond Estates Wine & Spirits (DWS-T).
Mr. Rutsey is the former CEO of the Canadian Gaming Association, former CEO of RPC Gaming Inc. and former CEO of Multigames International Inc. He is the recipient of the Canadian Gaming Industry Leadership and Outstanding Contribution Award.
''I am thrilled to have Russel, Harold and William enthusiastically embrace the opportunity to have significant roles in building the early foundations of Newgioco. The appointments deepen not only our corporate bench but also our business playbook as we set out to become a world leader in leisure betting. We believe that the extraordinary qualifications of the new directors is a major transformation for Newgioco which is now positioned to enter the rapidly developing U.S. sports wagering market on the back of the recent U.S. Supreme Court ruling,'' remarked Michele Ciavarella, CEO of Newgioco.
For the press release related to the appointment of the new directors, visit:
Newgioco Group Closes Over-Subscribed Private Placement of Debentures:
On June 4, 2018 Newgioco announced the over-subscribed closing of its private placement of convertible debentures. To accommodate investor demand, the Company increased the size of the initial debenture offering from $1.5 million to $7.5 million. Together with the first two financing rounds completed in February and April 2018, the private placement of debentures, which are convertible into shares of the Company's common stock at a fixed price of $0.40 per share, resulted in aggregate gross proceeds of approximately $8 million consisting of approximately $7 million in cash and approximately $1 million in conversions from debentures issued in 2017. The Company has paid off high-interest debt and intends to use the proceeds from the private placement for acquisitions, business development in the U.S. and Canadian market and for general working capital purposes.
"We are very pleased with the confidence that all our new investors, many of which are institutional, have placed in Newgioco's management team allowing us to close on an amount significantly greater than our initial objective," stated Michele Ciavarella, CEO of Newgioco. "The additional proceeds will be used to initiate our international and U.S. expansion plans through immediately available acquisition opportunities and to advance our objective of potentially listing the Company's shares on a national stock exchange. We believe both of these initiatives will extract shareholder value and result in strong growth and operational performance."
For the press release related to the private placement, visit:
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly-owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it, as well as retail neighborhood betting shops situated throughout Italy.
The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games, and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.
Cautionary Note Concerning Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For further information, please contact:
Office: +1 (416) 479-9547
SOURCE: Newgioco Group, Inc.