NTN Buzztime Announces Date of Special Meeting of Stockholders to Vote on Proposed Merger and Asset Sale
NTN Buzztime, Inc. (NYSE American: NTN) has announced the effectiveness of its registration statement on Form S-4 regarding its merger with Brooklyn ImmunoTherapeutics and the sale of its assets to eGames.com Holdings. A special meeting for stockholders is scheduled for March 15, 2021, to vote on these proposals. NTN's management indicates that the company has sufficient cash resources only through mid-March 2021, raising concerns about future operations if the transactions are delayed. If not completed timely, NTN may face financial distress or restructuring.
- Merger with Brooklyn ImmunoTherapeutics could enhance NTN's market position.
- Asset sale to eGames.com could provide liquidity.
- NTN may face operational curtailment or bankruptcy if the merger and asset sale are delayed.
- No current proposals to secure additional capital if transactions are not completed on time.
CARLSBAD, Calif., Feb. 3, 2021 /PRNewswire/ -- NTN Buzztime, Inc. (NYSE American: NTN), today announced that its registration statement on Form S-4 relating to the proposed merger involving NTN and Brooklyn ImmunoTherapeutics LLC ("Brooklyn") and the proposed sale of NTN's assets to eGames.com Holdings LLC ("eGames.com") has been declared effective by the Securities and Exchange Commission.
NTN will be holding its special meeting of stockholders to consider the merger, the asset sale and related proposals on March 15, 2021 at 9:00 a.m., Pacific Time, unless postponed or adjourned to a later date or time. Additional details regarding the proposals and the special meeting will be made available in the proxy statement/prospectus/consent solicitation statement relating to the special meeting.
As of the date of this press release, NTN has received no proposal regarding any potential acquisition or similar transaction from any party, and NTN's management and board of directors remain focused on closing the proposed merger with Brooklyn and the proposed asset sale to eGames.com.
As a result of the impact of the pandemic on NTN's business and taking into account NTN's current financial condition and its existing sources of projected revenue and its projected subscription revenue, advertising revenue and cash flows from operations, NTN's management believes that NTN will have sufficient cash resources to pay forecasted cash outlays only through mid-March 2021, assuming NTN is able to continue to successfully manage its working capital deficit by managing the timing of payments to its vendors and other third parties. If NTN's stockholders approve the proposals related to the proposed merger and proposed asset sale on which they will be asked to vote at the special meeting, the earliest the proposed merger and asset sale are expected to be completed is during the week of March 15, 2021. If the proposed merger and asset sale are delayed beyond that week, NTN will need to raise additional capital to maintain operations through the completion of proposed merger and asset sale, and NTN currently has no arrangements for such capital. If the proposed merger or asset sale are not completed for any reason and if NTN is unable to raise sufficient additional capital in the very near term, NTN will likely be required to curtail or terminate some or all of its business operations and NTN may have no choice but to pursue a restructuring, which may include a reorganization or bankruptcy under Federal bankruptcy laws, assignment for the benefit of creditors, or a dissolution, liquidation and/or winding up. In such event, NTN's investors may lose their entire investment. Further, while NTN might attempt to complete another strategic transaction like the proposed merger or to raise additional capital through equity financings and/or alternative sources of debt to allow NTN to continue as a going concern, based on the strategic process conducted to date, NTN does not believe that it would be able to identify and complete another reverse merger or consummate a financing to obtain sufficient additional financial resources when needed, on acceptable terms, or at all.
About NTN Buzztime:
NTN Buzztime (NYSE American: NTN) delivers interactive entertainment and innovative technology that helps its customers acquire, engage and retain its patrons. Most frequently used in bars and restaurants in North America, the Buzztime tablets, mobile app and technology offer engaging solutions to establishments that have guests who experience dwell time, such as casinos, senior living, and more. Casual dining venues license Buzztime's customizable solution to differentiate themselves via competitive fun by offering guests trivia, card, sports and arcade games. Buzztime's platform creates connections among the players and venues and amplifies guests' positive experiences. Buzztime's in-venue TV network creates one of the largest digital out of home ad audiences in the US and Canada. Buzztime hardware solutions leverages the company's experience manufacturing durable tablets and charging systems, enabling a diverse group of businesses including corrections, point-of-sale and loyalty with product implementation. Buzztime games have also been recently licensed by other businesses serving other markets. For more information, please visit http://www.buzztime.com or follow us on Facebook or Twitter@buzztime.
No Offer or Solicitation
This release is not intended to and shall not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities in connection with the proposed merger contemplated by the agreement and plan of merger and reorganization (the "Merger Agreement") between NTN and Brooklyn Immunotherapeutics LLC ("Brooklyn") dated August 12, 2020 (the "Merger") shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with the proposed merger and asset sale, NTN filed relevant materials with the SEC, including a registration statement on Form S-4, that will serve as a proxy statement and prospectus of NTN and a consent solicitation statement for the beneficial holders of Brooklyn's Class A membership units, and will be mailed or otherwise disseminated to NTN stockholders and to the beneficial holders of Brooklyn's Class A membership units if and when it becomes available. INVESTORS AND SECURITY HOLDERS OF NTN AND BROOKLYN ARE URGED TO READ THESE MATERIALS CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NTN, BROOKLYN, THE PROPOSED MERGER AND ASSET SALE, AND RELATED MATTERS. The proxy statement/prospectus/consent solicitation statement and other relevant materials (when they become available) and any other documents filed by NTN with the SEC, may be obtained free of charge at the SEC website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by NTN by directing a written request to: NTN Buzztime, Inc, 6965 El Camino Real, Suite 105-Box 517, Carlsbad, California 92009. Investors and security holders are urged to read the proxy statement/prospectus/consent solicitation statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed merger and asset sale.
Participants in the Solicitation
NTN and its directors, executive officers and certain other members of management and employees, Brooklyn and its managers and officers, and eGames.com and its managers and officers may, under SEC rules, be deemed to be participants in the solicitation of proxies from the stockholders of NTN with respect to the proposed Merger and Asset Sale and related matters. Information about the directors and executive officers of NTN, including their ownership of shares of common stock is set forth in NTN's Annual Report on Form 10-K for the year ended December 31, 2019 and Amendment No. 1 thereto, which were filed with the SEC on March 19, 2020 and April 27, 2020, respectively (the "2019 Annual Report"). Additional information regarding the persons or entities who may be deemed participants in the solicitation of proxies from NTN stockholders, including a description of their interests in the proposed Merger and Asset Sale, by security holdings or otherwise, are included in the proxy statement/prospectus/consent solicitation statement referred to above and other relevant documents to be filed with the SEC when they become available. As described above, these documents will be available free of charge at the SEC's website or by directing a written request to NTN. Neither the managers or officers of Brooklyn nor the managers or officers of eGames.com currently hold any interests, by security holdings or otherwise, in NTN.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that are not statements of historical fact and may be identified by terminology such as "expect," "intend," "plan," "believe," "anticipate," "may," "will," "would," "should," "could," "contemplate," "estimate," "predict," "potential" or "continue," or the negative of these terms or other similar words. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those stated or implied in any forward-looking statement as a result of various factors, including, but not limited to: (i) risks that the conditions to the closing of the proposed merger and/or asset sale are not satisfied, including the failure of NTN and Brooklyn to timely obtain the requisite stockholder and member approvals for the merger and/or asset sale and related matters or to meet the net cash and capitalization requirements under the merger agreement, as applicable; (ii) uncertainties as to the timing of the consummation of the proposed merger and asset sale and the ability of each party to consummate the proposed merger and asset sale; (iii) risks related to NTN's and Brooklyn's ability to manage their respective operating expenses and expenses associated with the proposed merger and asset sale, as applicable, pending closing of the merger; (iv) the risk that, as a result of adjustments to the exchange ratio, NTN stockholders and Brooklyn members could own more or less of the combined company than is currently anticipated; (v) NTN's continued listing on the NYSE American; (vi) uncertainties related to the impact of the COVID-19 pandemic on the business and financial condition of NTN, Brooklyn and the combined company and the ability of NTN and Brooklyn to consummate the merger and NTN and eGames.com to consummate the asset sale; (vii) NTN's ability to continue to operate as a going concern if the proposed merger or asset sale are not consummated in a timely manner, or at all; (viii) Brooklyn's need for, and the availability of, substantial capital in the future to fund its operations and research and development activities; (ix) Brooklyn's ability to successfully progress research and development efforts after the merger, including its manufacturing development efforts, and to create effective, commercially-viable products; (x) the success of Brooklyn's product candidates in completing pre-clinical or clinical testing and being granted regulatory approval to be sold and marketed in the United States or elsewhere; (xi) the outcome of any legal proceedings that have been instituted against NTN, Brooklyn, eGames.com or others related to the merger agreement or the asset purchase agreement, as applicable; (xii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of either or both of those agreements; (xiii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed merger or asset sale; and (xiv) those risks and uncertainties discussed in NTN's reports filed with the SEC, including its 2019 Annual Report, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, as well as other documents that may be filed by NTN from time to time with the SEC available at www.sec.gov.
You should not rely upon forward-looking statements as predictions of future events. NTN cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this communication speak only as of the date on which they were made. NTN does not undertake any obligation to update the forward-looking statements contained herein to reflect events that occur or circumstances that exist after the date hereof, except as may be required by applicable law or regulation.
CONTACT: Sandra Gurrola, sandra.gurrola@buzztime.com
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SOURCE NTN Buzztime, Inc.
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