NeoGames (NASDAQ: NGMS) is the worst-performing gaming stock, and investors including, Caesars Entertainment (NASDAQ: CZR) could soon be selling up to four million shares.
On Wednesday trading, shares of NeoGames were off nearly 10 percent, further extending dropped by 17 percent from the previous month.
A Form F-1 filing with the Securities and Exchange Commission (SEC) indicates that NeoGames insider investors are dealing 3.45 million of her shares. The transactions will not result to profit for the gaming company.
In total, Caesars could sell 3.97 million NeoGames shares if the buyer decides to purchase additional 518, 601 ordinary shares from Caesars. The F-filling also indicates that the maximum offering sale price is $40.41, which is too much discount, even causing the stock to slump further.
Caesars acquired a 24.5 percent stake in NeoGames through the $3.69 billion purchase of William Hill. In other terms, Caesars owns 6.12 million of the iLottery company shares, making the casino operator the largest shareholder.
Caesars is, however, dramatically reducing its stake in NeoGames to about 3.06 million. That will brings Caesar’s stake in the firm to 12 percent. If underwriters decide to purchase an additional 518. 601 shares, Caesars stake, would reduce to 2.54 million shares.
Caesars’ position is not necessarily an indictment rather an indication of a desire to bring in added capital. Caesars recently completed paying $3.69 billion for William Hill assets. Caesars’ cash could now be directed towards bolstering its iGaming and sports betting footprint.