In the announcement, Progressive Gaming stated it will trade 2 million shares for all the common stock, warrants and preferred stock of VirtGame. The business deal prices VirtGame at around 31 cents per share, based on VirtGame's 63.6 million fully liquidated shares outstanding, or an 11% discount to Friday's closing stock price of 35 cents.

Chief financial officer fot Progressive says the purchase price is still vulnerable to modifications for VirtGame's working funds and a bridge loan of no more than $2.5 million. The executive also said options and warrants that are not implemented by holders will not be transformed into Progressive Gaming shares automatically.