To: Cheeseburger (2434 )
From: Jorjenzak Friday, Jun 4 1999 11:07PM ET
Reply # of 2445
This is an excerpt I liked from the June 1, 1999 SEC filing:
(b) Business. The Company is positioning itself to facilitate same as cashATM
card or smart card transactions that are originating from bank host
processing centers and are being sent to gaming operators. These
transactions are being effected with electronic equipment thatallows
self service pay per play and no actual communications between the
player and the gaming operator. These types of transactions will be
originating from homes, offices, and public walk in locations. The
Company will act as the interface that will communicate data to the
gaming operators, receive back their acknowledgment of thetransaction
and then pass on this gaming acknowledgment to the bank hostprocessing
center that has been standing by for this information and hasalready
completed the bank authorization of the pay per play transaction.See
Description of Business.
The business model of the Company is to receive a fee per
transaction paid by the bank host processing center at the moment of
the transaction. In general, this fee will be from between 2% to 6%of
the wager placed on a pay per play or a $6 flat fee in the case ofan
account being opened.
The internet gaming industry is an industry that has developed
significantly in recent years. The internet gaming industry as awhole
is under increasing governmental scrutiny as the industry develops.It
is possible that at some point in the future there could belegislation
against gambling on the internet or other similar methods. See RiskFactors.
The Offering.Shares of the Company will be offered as a shelf registration
under Securities and Exchange Commission Rule 415 at $0.62 perShare.
See Plan of Distribution. Purchasers of certain debentures of the
Company will be permitted to convert the debentures into commonstock
covered by this Prospectus. Also, purchasers of certain warrants of
the Company will be permitted to exercise their warrants into common
stock covered by this Prospectus. See Plan of Distribution. If allthe
Shares offered are transferred under the debentures and/or warrants,
this will represent the net proceeds from sale of the warrants and
debentures of a maximum of $6,200,000, less certain costs associated
with this offering. See Use of Proceeds. This balance will be usedas
working capital for the Company.Liquidity of Investment.
Although the Shares will be free trading, and is an established
market for the Shares, there is not a large public float in theShares
at this time (14,500,000 shares owned by approximately 400
shareholders. Therefore, an investor may not be able to sell isShares
when he or she wishes; therefore, an investor may consider his orher
investment to be long-term.
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