Ciao,
Here's a paragraph that I snipped from the Sept. 30 news release....
The Company recently sold and assigned all of its rights in its
California based Revenue Share Agreements with the various Tribes
to Support Consultants, Inc., a California corporation ("SCI"), in
furtherance of its commitment to honor the mandate set by the U.S.
Attorneys in California. The assignment included transfer of the
Company's rights to revenue from the revenue share arrangements
with the various tribes as well as assignment of loans. Title to
the machines was not transferred to SCI. In consideration for the
assignment to SCI, the Company accepted a note payable in the
amount of USD$4,500,000 to be paid in installments over three
years, contingent upon SCI's success in collecting such sums from
the various Tribes. The amount of consideration was based upon
numerous factors, including the present value of the revenue
stream, the assumption of all support and maintenance obligations
by SCI, and the likelihood that any revenue and loans will be
collected by SCI. Depending upon whether a favorable settlement
is reached with the non-compacted tribes and the state government,
the Company may receive a partial recovery on its California contracts.
On November 3, 1998, the voters in California will decide whether
to approve Proposition 5, the California Gaming Initiative. The
initiative sets up a battle between the pro-Indian gaming
constituents and the opposition, which is composed of various
interests against Indian gaming in California. If a majority of
the voters vote "yes" on the initiative, then the various Tribes
will be able to continue to conduct gaming in the form that exists
today--that is, the gaming machines that Governor Wilson has been
attempting to outlaw will be legal. Furthermore, in that event,
the Company will likely recover revenue from the SCI transaction
described above.
Here's a comment about INB's future plans in California from their Nov. 6/98 news release......
We anticipate providing consulting and other services to tribal casinos in California after compacting occurs.
I hope this clears up a few things.
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