|Chartwell Technology Inc, the leading provider of gaming software systems to the online and remote gaming industry and Parlay Entertainment Inc, the world's leading provider of Internet bingo solutions, have announced that the already postponed business merger as set out in a Letter of Intent in August, is now to be terminated.|
The proposed merger, which had been postponed earlier this month, appears to have been compromised by the passing of the Unlawful Internet Gambling Enforcement Act, which has shrouded the entire online gaming industry in uncertainty.
The statement read, “The continuing market uncertainty for the online and remote gaming industry generated by recent legislative actions in the United States has forced Chartwell to conclude that it will be unable to obtain a fairness opinion which supports the business arrangement or the share exchange ratio.”
“Chartwell and Parlay have therefore concluded that their proposed business combination cannot be completed on the terms originally negotiated by the parties. As a result, Chartwell and Parlay have agreed to terminate all merger discussions. As part of this agreement, Chartwell has agreed to reimburse Parlay for a portion of its expenses in connection with the proposed business combination.”
Following the news yesterday, shares in Parlay Entertainment Inc nosedived nearly 19 percent.