CARLSBAD, Calif., Jan. 6, 2012 /PRNewswire/ -- NTN Buzztime, Inc. (NYSE AMEX: NTN) today announced that its board of directors has approved a reduction in the subscription price of the planned rights offering to existing stockholders from $0.31 per share to $0.25 per share. Certain factors considered by the board of directors in approving the reduced subscription price included the trading prices of the Company's common stock since the Company announced the planned rights offering and increasing the attractiveness of the investment for existing stockholders who choose to participate.
The Company filed an amendment to its registration statement on Form S-3 with the Securities and Exchange Commission to reflect the reduced subscription price for the rights offering. While the Company is still seeking to raise up to $4 million in the rights offering, as a result of the reduced subscription price, the Company may sell up to 16,000,000 shares of its common stock in the rights offering and each subscription right will, based on the shares of common stock outstanding as of the date hereof, entitle the holder to purchase 0.2626 shares of common stock. Other terms of the planned rights offering remain unchanged.
The Company is seeking to raise capital to support its ongoing operations and pursue its growth and product development strategies. The board of directors believes that providing existing stockholders the right to purchase shares through a rights offering is the most efficient, fair and equitable approach to raising this capital at this time.The Company will distribute to its stockholders as of the record date, non-transferable subscription rights, each of which will include (i) a basic subscription privilege and (ii) an over-subscription privilege that entitles the holder (other than Matador Capital Partners, L.P. and its affiliates), if such holder exercises its basic subscription privilege in full, to subscribe to purchase a portion of the shares not purchased by other stockholders at the same subscription price per share, subject to certain limitations.