SOURCE: Canadian Press

(Oakville, Canada) — Parlay Entertainment Inc. (TSXV:PEI), a developer of Internet bingo software, says it struck a a non-binding letter of intent to be acquired by PEIC Acquisition Corp. in a deal valued at about $12.3 million.

Parlay shares were halted on the TSX Venture Exchange pending news of the deal.

The proposed transaction, announced Friday, would provide Parlay shareholders with 95 cents each in cash. With just under 13 million shares outstanding, the transaction values the Canadian company at about $12.3 million.

"There can be no assurance that any definitive agreement will be entered into, that any proposed transaction will be approved by the shareholders of Parlay or that any transaction will be completed as a result of the execution of the letter of intent," Parlay said.

The Toronto-area company said it has set up a special committee of independent directors to hire a financial adviser and review the transaction.

Parlay is the world's biggest developer and licensor of Internet bingo software. Parlay is headquartered in Oakville, just west of Toronto, and has offices in Bridgetown, Barbados, and Valletta, Malta.

PEIC Acquisition is a wholly owned subsidiary of Barbados-based Letton Investments Ltd and its President Mark Blandford founded Sportingbet.

On the TSX Venture Exchange, Parlay stock last traded at 49 cents.