PokerTek reports investment led by Magnetar Capital

CHARLOTTE, North Carolina -- (PRESS RELEASE) -- As part of its plan for further company growth, PokerTek (NASDAQ: PTEK) announced today that it has completed a private placement of approximately $13 million of its common stock to institutional investors, including Magnetar Capital, Greenway Capital and a large mutual fund. The shares of common stock with related five-year warrants were sold at a price of $9.00 per share. After expenses and fees, PokerTek received net proceeds of approximately $12.5 million.

"PokerTek has accomplished several significant goals in the last few months," said PokerTek CEO Lou White. "This investment will aid us as we continue to grow our business, acquire new customers and help make those customers successful."

PokerTek intends to use the net proceeds from the private placement for general corporate purposes, including continuing the development of the PokerPro system, obtaining regulatory approvals, and working capital.

Roth Capital Partners served as the sole placement agent for this transaction.