Trans-Global poised to complete transformation
Australian Associated Press
By Veronica Brooks
MELBOURNE, June 3 AAP - Miner Trans-Global Resources NL will
complete its transformation to an online gambling and home
entertainment entity next week, when the company relists on the
Australian, Canadian and NASDAQ stock exchanges.
With a reconstruction and $3 million capital raising now under its belt, Trans-Global Interactive Ltd will join the growing
numbers of local resources companies switching from mining to the
Internet.
Last month, Trans-Global announced the acquisition of various interests in expanding Australian software content supplier Gaming and Entertainment Technology Systems Pty Ltd (GET).
Trans-Global has initially taken a 30 per cent stake in the revenue stream derived by GET from Internet Casino Gambling and 50 per cent equity in GET Interactive Inc.
GET Interactive Inc in turn holds a 42.5 per cent interest in the US Online Digital TV Gaming Channel joint venture.
GET's fundamental business is software and content provision and will derive profits -- between $1 million and $2 million in the first year -- from ongoing royalty streams related to profits of various licensed casinos operating online.
GET has developed customised gambling software products for many casino games such as blackjack, keno, slots, roulette, baccarat and is continously adding to its portfolio.
Trans-Global has also secured a 50 per cent interest in the revenue stream converting to 50 per cent equity in GET Interactive Inc for digital TV-based online gaming channels.
Trans-Global executive chairman Bryan Frost said that activity is being developed in a joint venture operation in the US.
The interactive software links home players via the internet and digital TV technology to game show networks.
Revenue is generated chiefly from player participation and
advertising.
Mr Frost said Trans-Global and GET were well placed as the
Australian government begins granting licenses for internet-based casino gambling.
Gambling on the Internet is currently illegal in the US and Mr Frost also noted that country will be watching developments in
Australia.
"Internet usage is estimated to increase from around 100 million online worldwide this year to 707 million by 2001," Mr Frost said, adding that an estimated 38 million people play games online.
At the same time the worldwide internet gaming market is
currently estimated at $US500 million and is anticipated to expand
to $US7 billion by 2001 and $US10 billion in 2002.
Trans-Global was suspended from trading on April 13 at a modest 4.6 cents a share prior to its acquisition of the GET interests.
Mr Frost said the company's 15 million share issue at 20 cents apiece should see Trans-Global make a strong return to the
Australian Stock Exchange, most likely next Wednesday or Thursday.
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