LV gaming firm elaborates on stock registration

Tuesday, Aug. 29, 2000 | 10:36 a.m.

Mikohn Gaming Corp. of Las Vegas commented Monday on the recent registration of nearly 1 million shares of its stock, saying most of the shares will be acquired through the exercise of options.

The company said 785,000 of the 989,273 shares will be issued in connection with stock options and warrants. The options and warrants were granted to several companies in connection with licensing rights to five branded board games, including Hasbro Inc.'s Yahtzee, Battleship and Monopoly.

Only 125,000 of the options are presently exercisable, Mikohn said, with another 250,000 becoming exercisable in 60 days if certain conditions are met. The remaining options would become exercisable over the next two years if certain conditions are met.

While the Mikohn registration statement covered a total of 750,000 Hasbro-owned shares, Mikohn said agreements with Hasbro "include a cashless exercise option which, if utilized, could substantially reduce the number of shares issued." The 133,333 shares held by Harrah's Operating Co. were issued in 1998 in connection with table game technology and patents acquired by Mikohn.

"We believe that using the company's common stock as currency to acquire these valuable licenses is appropriate," said Charles McCrea, Mikohn executive vice president and general counsel. "This approach provides a good way for both licensor and licensee to share in the benefits of a successful casino product."