Advanced Gaming Technology Inc. and Sega Gaming Technology Inc. Sign Letter of Understanding
PR Newswire - March 25, 1998 09:35
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VANCOUVER, Canada, March 25 /PRNewswire/ -- Advanced Gaming Technology,
Inc. (OTC Bulletin Board: AGTI), and SEGA Gaming Technology, Inc. (SGT) Las
Vegas, Nevada today announced the signing of a Letter of Understanding whereby
it was agreed:
-- AGT and SGT shall, by way of incorporation, form a new
company, to jointly develop and market innovative software
products to the gaming industry. The first such product will
be Sonic Bingo;
-- Sonic Bingo, as it has been designated during the design and
developmental stage thus far, is a fast-paced, progressive linked
speed bingo game for use in Class II bingo halls throughout North
America;
-- The new company shall license from Sega Gaming Technology, Inc. its
rights to use of the "SEGA" brand name, and it shall license from
Advanced Gaming Technology, Inc. its MAX Bingo System software,
Prisms patented game technology, and rights to use the "Sonic
Bingo" trademark;
-- Start-up capital has been contributed by both companies which will
facilitate incorporation and product development costs for Sonic
Bingo. Hereinafter, capital expenditures and revenues shall be shared
on a 50/50 basis. AGT and SGT, within terms of an earlier
preliminary agreement (May 1996), have already expended co-operative
funds towards development of ten (10) proto-types for Sonic Bingo.
AGT and SGT have employed Mr. James Hammer, previously Vice President
Sales and Marketing for AGT, as Product Manager for Sonic Bingo. Mr. Hammer
brings extensive years of experience in Class II and Class III gaming as a
corporate executive.
The 1998 Business Plan for Sonic Bingo contemplates finalization of the
design and development of Sonic Bingo, followed by a pilot programme with
approximately one hundred (100) units linked between multiple sites in the
U.S. Sonic Bingo is targeted to be launched for commercial use in late 1998,
with the prospective market including Class II bingo halls, and in Class III
venues throughout North America.
Sega Gaming Technology, Inc. with approval by its Board of Directors, has
authorized a Purchase Programme of up to 5 million common shares
(approximately 5% of AGT's issued and outstanding shares) in open market
transactions as well as purchasing a portion by way of private placement with
AGT.
Doug Sanderson, CEO, Sega Gaming Technology, Inc., states, "...Sonic
Bingo is a game that we believe has the potential to bring a new level of play
to bingo halls on a world wide basis...we have been working on this joint
venture for a year...Sega looks forward to a long-term relationship with
AGT."
Tom Nieman, Chief Executive Officer of AGT comments, "...Sega Gaming
provides an important ingredient to development and launch of Sonic Bingo...We
believe SGT's international marketing skills and strategic business
relationships are a perfect fit for AGT's platform of software technology.
This Agreement is consistent with AGT's new business strategy whereby the
Company is exploiting its technology in joint ventures as well as licensing
and distribution agreements."
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS. Certain
matters contained herein regarding matters that are not historical facts are
forward-looking statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Because such statements include risks and
uncertainties, many of which cannot be predicted with accuracy and some of
which may not even be anticipated, future events and actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are
not limited to, operating losses in recent periods; future capital needs and
uncertainty of additional financing; government regulation; risk of low priced
or penny stocks; trademark and patent protection; competition; and
technological innovation. The Company's operations are subject to numerous
risks associated with establishing any new business, including unforeseen
expenses, delays and complications.
Advanced Gaming Technology, Inc. creates, designs, markets patented and
proprietary gaming systems and software including technologically advanced
electronic bingo systems. The Company is a major supplier of electronic
gaming systems, offering increased play potential and revenue to gaming
operators. Its stock trades under the symbol AGTI on the NASD Electronic
Bulletin Board. |
