Key Developments For Optimal Group, Inc.
Optimal Group, Inc. (OPMR.O) (Consolidated Issue listed on NASDAQ Global Market)
Optimal Group, Inc. Comments On FY 2009 Revenue Outlook
Optimal Group, Inc. announced that it expects revenues to remain under pressure in fiscal 2009 as a result of continuing retail softness driven by a continued pull-back in consumers' willingness to spend and retailers' desire to reduce inventories, weakening foreign exchange in international markets, and the sale of fewer toy and entertainment-related products.
Optimal Group, Inc. Enters Into Non Prosecution Agreement With Office Of United States Attorney
Optimal Group, Inc. announced that it has entered into a non-prosecution agreement with the Office of the United States Attorney for the Southern District of New York. Following announcements by the Office of the United States Attorney for the Southern District of New York relating to its investigation of the U.S. Internet gambling industry, the Company announced on May 8, 2007 that it had initiated discussions with the U.S. Attorney's Office and it was in the process of responding to a voluntary request for information issued by the U.S. Attorney's Office. In connection with such ongoing investigation, the Company announced on May 11, 2007 that it had received a copy of warrants of seizure issued by the U.S. Attorney's Office against funds of certain payment processors that were on deposit with two U.S. banks, which included $19,182,418.18 on deposit to the credit of the Company's affiliates. Under the terms of the non-prosecution agreement, a total of $19,182,418.18 will be forfeited to the United States by the Company and its subsidiaries, as disgorgement of property involved in and proceeds received from the payment processing services that were provided by the Company's subsidiaries to Internet gambling merchants in relation to U.S. customers of such merchants. Optimal and the U.S. Attorney's Office have agreed that the $19,182,418.18 previously seized.
Optimal Group, Inc. Comments On FY 2009 Revenue Guidance
Optimal Group, Inc. announced that for fiscal 2009, it expects revenues to remain under pressure as a result of continuing retail softness driven by a continued pull-back in consumers' willingness to spend and retailers' desire to reduce inventories, weakening foreign exchange in international markets, and the sale of fewer entertainment-related products.
Optimal Group, Inc. Announces Agreement For Disposition of Portfolio of Merchant Processing
Optimal Group, Inc. announced that Optimal Payments Corp., a wholly owned subsidiary of the Company, has entered into an option agreement with United Bank Card, Inc., giving to Optimal Payments the right to cause United Bank Card to purchase, and giving to United Bank Card the right to cause Optimal Payments to sell, a portfolio of residual payments from merchants processing credit card present transactions. The portfolio represents in excess of 5,000 merchant locations. Under the terms of the option agreement and related agreements entered into by the parties, the purchase price for the portfolio is $11 million. Until either party has exercised its right to cause the completion of a purchase and sale transaction, United Bank Card will continue to service the portfolio and Optimal Payments will continue to receive residual payments from the portfolio and pay a service fee to United Bank Card for its services. The aggregate amount of residuals earned by Optimal Payments, net of the aggregate service fees paid, will be set off against and will reduce the purchase price monthly until the completion of a purchase and sale transaction. The adjusted purchase price will be increased monthly by a notional rate of interest. Optimal Payments' right to cause United Bank Card to purchase the portfolio may be exercised any time on or after February 2, 2011. United Bank Card's right to cause Optimal Payments to sell the portfolio may be exercised at any time up to December 31, 2014.
Optimal Group, Inc. Renews Normal Course Stock Buyback Program
Optimal Group, Inc. announced that on November 5, 2008, announced its intention to renew its normal course stock buyback program following the expiry on November 20, 2008, of its current stock buyback program. The number of Class "A" shares that may be purchased for cancellation under the renewed stock buyback program will not exceed, during the 12-month period of the program, 1,290,000 shares or approximately 5% of the 25,829,090 Class "A" shares outstanding as at November 13, 2008. Optimal may purchase the Class "A" shares on the open market through the facilities of the Nasdaq Stock Market from time to time over the course of 12 months commencing November 21, 2008 and ending on November 20, 2009 and the price which the Company will pay for any such shares will be the market price of such shares at the time of acquisition. All shares purchased under the stock buyback program will be cancelled.
