Hi Rich,
Just when I thought NTN was getting to be a boring investment, they filed the 8-K.
I am somewhat concerned that April 15 has passed with no announcement about the NFL license. The business about the AMEX listing just serves to remind me that NTN is still mostly in retail hands and trades accordingly.
What are your thoughts?
June
Excerpts from NTN COMMUNICATIONS INC Form: 8-K Filing Date: 4/17/2000:
Agreement with the National Football League. We have had a 15-year relationship with the National Football League as a licensee for the hospitality version of our "QB1" predict-the-play interactive game. On April 3, 2000, we extended the hospitality platform provisions of our existing License Agreement with National Football League Properties, Inc. through April 15, 2000, while we continue our negotiations with the NFL for a new agreement. We are also seeking to renew an online license with the NFL that brought QB1 to the Internet at websites QB1.com and NFL.com last season. We are continuing our negotiations with the NFL, although we cannot give assurances that we will ultimately be able to reach agreement with the NFL on these matters.
Settlement of Class-Action Lawsuit. On April 3, 2000, the U.S. District Court for the Southern District entered a final judgment and order of dismissal in the class-action lawsuit entitled Eliot Miller and Jay Iyer, shareholders on behalf of themselves and all others similarly situated vs. NTN Communications, Inc., Patrick J. Downs, Daniel C. Downs, Donald C. Klosterman, Ronald E. Hogan, Gerald P. McLaughlin and KPMG LLP. The settlement becomes final upon the expiration of the time for filing a notice of appeal, which is thirty days after entry of judgment, or May 3, 2000.
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Lack of Compliance with American Stock Exchange Guidelines. The American Stock Exchange (AMEX) has published a set of continued listing guidelines that it follows to determine whether an AMEX-listed company should continue trading or listing of its securities on the exchange. Under these guidelines, the AMEX will consider suspending or "delisting" a company's securities from the exchange:
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o if it has sustained operating or net losses in its five most recent fiscal years.
As we reported in our 1999 Annual Report on Form 10-K, we incurred a net loss of $2,498,000 for the year ended December 31, 1999, representing our fifth consecutive year of losses. Additionally, we reported shareholders' equity of $2,221,000 as of December 31, 1999. As such, NTN is technically not in compliance with the continued listing guidelines of the AMEX.
We have received correspondence from the AMEX indicating that, despite the fact that NTN does not currently meet the guidelines, the AMEX will continue the listing of NTN's Common Stock pending a review by the AMEX of NTN's 1999 Annual Report on Form 10-K and certain other financial information that we have supplied to the AMEX. The determination by the AMEX is subject to our making favorable progress towards complying with the guidelines and to periodic review by the AMEX of our filings with the SEC.
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