SUNGOLD NEWS RELEASE
May 4th, 2001
Vancouver, British Columbia [Business Wire] May 4, 2001. Sungold Entertainment Corp.
(OTC Bulletin
Board: SGGNF News) announces that an agreement has been completed for the acquisition
of the entire
world wide right, title and interest to the internet payment system technology of SafeSpending
Services
Inc. The internet payment system business is a growing multi billion dollar market.
The acquisition agreement with SafeSpending includes all copyrights, trademarks, source
codes and
SafeSpendings' intellectual property. Under the terms of the agreement Sungold has agreed
to pay a 7.5
percent royalty of net revenue relating to the technology and 330,000 common shares in the
capital of
Sungold Entertainment Corp. upon Sungold or it's subsidiary Horsepower Broadcasting
Network Inc.
receiving $1,000,000 in net revenue from the sale or license of the technology. The
SafeSpending internet
payment system is a pre-paid spending system that uses cards with a unique PIN number
which can be
used to make purchases online from merchants or individuals.
A survey by Odyssey Online found that 83 percent of respondents said that payment security
concerns
prevented them from shopping online.
The alternatives to credit and debit cards being offered as more secure alternatives, such as
Smart Cards,
fail to address consumer concerns about privacy.
SafeSpending has developed a system which allows consumers to pre- purchase spending
cards of a
certain value that will enable the consumer to purchase online without divulging any personal,
confidential
information as would be necessary if one used a credit card or any other traceable transaction
service.
The pre-paid cards will be of a certain value (e.g. the cards value will come in $25.00, $50.00,
$75.00 and
$100.00 increments), allowing the consumer to choose which card best suits their purchasing
needs. The
cards will be available behind the counter at most major retailers.
Online merchants can be assured of almost immediate payment, and pay a smaller fee to the
Company
for use of the SafeSpending payment system than they would usually pay to a credit card
company.
Merchants accepting prepaid spending cards would be immune from fraud. Music and media
outlets,
looking for ways to tap into the vast teen market online, may find prepaid spending cards a
solution to
their current marketing dilemma. Individuals selling on auction sites could receive payment
from bidders
by providing SafeSpending with an account number. Conversely, auction sites are looking for
solutions to
the fraud for which their sites are becoming infamous. Online gamblers can monitor their
wagering by
using age restricted SafeSpending cards instead of credit cards. |
