We recently reported on Progressive Gaming's second quarter financial statement released last week, which although still from profitable, showed considerable progress had been made in getting themselves out of the hole (Please see our previous news article: Progressive Gaming Rebounds as Casino Gaming Systems Supplier). Faced with tough financial struggles the year prior, Progressive Gaming's commitment to establishing itself as a casino gaming systems supplier in Europe and Asia is beginning to pay off.

Following this report, Progressive has made a definitive purchase agreement with a large mutual fund, divvying out approximately 7 million shares to accredited investors. Requiring a registration statement to be filed with the Securities and Exchange Commission, the private placement of shares is subject to closing conditions which are expected to take place by tomorrow.

With their casino table games division now being bought out by Shuffle Master, Progressive Gaming is on the fast track to repositioning itself as a leading casino gaming systems supplier. The deal with Shuffle Master, which was worth $29.3 million helped Progressive mitigate its losses down to under $5 million, while the recent private placement is valued at $31 million. In a press release announcing the agreement, Progressive said they will be using the proceedings from both of the aforementioned transactions to repay debt and strengthen its working capital for expansion in new gambling markets.

According to the press release, no warrants were issued in connection with financing for the private placement of shares. It was not revealed exactly how the shares will be apportioned by the mutual fund, other than a limited amount of accredited investors will have an opportunity to buy the shares. In order to do so, the shares must be registered with the SEC, which as mentioned, is part of the closing conditions of the private placement.