Mr. Gore,
It doesn't sound as if, by the last few posts that the people here on SI are aware that David posted again on RB. He indicated that the Q & A answers are available on the WINR website under "Press". Here is the release if you haven't seen it.
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Investor Questions and Answers
Mr. David C. Skinner, Jr., CEO of WINR released the following information in response to the most recent inquiries concerning the current and future operation of WINR. These questions were submitted to WINR by investors and have not been changed in any way.
WINR has provided the answers in as much detail as possible at this time.
1. By what date (no later) will you be a fully reporting company with the SEC, and investors will be able to go to Edgar and view your form 10 or 10Q filing? If you are unable to answer this question with 100% assurance, don't! Don't give a date and miss it!
Answer: We have forwarded all of the necessary paperwork to our legal representatives for filing. The filing is scheduled to take place during the first week of August. We cannot state for certainty when the SEC will complete the necessary review and approval.
2. The Debit Card is being articulated on the Winner site as, "For use in thousands of ATM machines in 117 Countries Worldwide". Has Winner issued any Debit Cards as of yet?
Answer: The response for a debit card has been extremely low. In our agreement with the necessary issuing bank, we would need a larger number for card issuance. In the meantime we have been enhancing the payout structure that we are using. We would expect that, under the new processing agreement with the CyberLink Group, the interest in the debit card would be greatly enhanced. We therefore have not abandoned this aspect of processing.
3. What is the status of new casinos being added?
Answer: We are currently in negotiations with three gaming entities through our contract with Access World. Once these agreements are finalized we will be presenting all the information to the shareholders in a press release.
4. Are we going to be receiving any Revenue, Gross Margin, and Operating expense information with regards to Q2? Or are we going to be receiving the same information as we did in Q1? I would like more details. Not an over-the-top statement like, "we earned .01 a share".
Answer: The Q2 earnings will be broken down and released in greater detail then in the Q1.
5. What is the status of shoppingdowntown.com? When will they become operational and earning revenues?
Answer: We are still in the development phase of the site. We expect to have the new site available very soon. An agreement was reached with iChargeit that they would do the necessary software for the actual shopping sites and WINR will process all financial activity. This is a joint venture for shopping and processing revenue combined.
6. What has been the impact on Win-A-Lottery.com and why was there never a press release stating that it is now operational? If nobody knows about it, "they will not come".
Answer: We have had a press release that provided an overview of the operational Win-A-Lottery site. They are currently improving their business weekly
7. Dr. Peter Keppeler with GBR Ernst & Young in Basel, Switzerland, regarded as experts in Swiss Banking Standards, are an integral part of this overall development. How and to what functions?
Answer: They will be handling all of the necessary administration and applications for the CyberLink Group for banking. They will submit all the necessary paperwork and diligence required. They have a very elite banking division that will be working with CMS to provide the vital management and operation skills required. It is expected they will also become the official auditors and advisory firm in this regard.
8. It is also intended to expand the bank with offices in other EU jurisdictions as permitted. With what capital base?
Answer: It is intended that the bank will be an exclusive Internet Bank in its initial application. CMS, or its affiliates, have offices in London, Vienna, and other financial centers. The Internet capacity will allow the bank to have affiliate branches in other areas for customer service and support. We cannot respond to the capital base of the CyberLink Group but would refer to www.proksch.com.
9. Directors of the bank will be from major banks or related financial areas with the expertise needed to manage the banking services. This is the first time I have heard of Directors managing banking services? Again, very general and begs for clarification. Again, capital for staffing and proven experience?
Answer: Members of the Board of Directors and/or Managers will be from banks or related financial markets. Applications are currently under consideration for the Internet Bank and consist of very experienced managers from many different worldwide financial groups. Proven experience will be met under all existing banking guidelines for International Banking under rules and regulations as administered by Ernst&Young and other advisory members including Dr. Reinhard Proksch.
10. It will be the first exclusive application for an Internet Bank in Europe. This allows for our software to be utilized by a bank and create branches worldwide for the most expeditious service. These statements appear to conflict?
Answer: There is no conflict. The Internet Bank will be a worldwide bank once it becomes operational and is approved under existing guidelines. Branches would refer to the ability to have customer support and service in different areas of the world. The main center for banking operations will be located in Liechtenstein according to the CMS details provided.
11. What about Beta testing of system. With whom? When? How long? Types of transactions?
Answer: The WINR software has been in operation for 7 months now and has fully proven itself. We are utilizing the same ‘back office' for all e-commerce businesses and will only have to make minor changes for each new venture. WINR only processes online financial transactions and will continue to do so in all avenues we pursue.
12. Timetable for release? Marketing efforts? By whom? With what capital?
Answer: The timetable for the Internet Bank application is being handled by Ernst&Young and they are making a diligent effort to have all approvals ASAP. The Cyberlink Group, through their worldwide market affiliations, would handle the marketing efforts. The capitol will be provided and funded by the Cyberlink Group and/or its affiliates extensive world-wide PR campaign by a large global marketing firm.
13. Is WINR currently receiving payments from IChargeit for services or is this interface still in the design phase? Answered, Question 5.
14. What is CFG doing to promote WINR and get the word out to the investment community? CFG TO RESPOND.
15. Can you give details about the upcoming shareholders meeting?
Answer: WINR's is currently mailing to all shareholders of record, as of May 20, 1999, all information the shareholders meeting. It is being held on July 28th at 2:00pm in Vaduz Liechtenstein.
16. What is the current and official number of shares authorized, outstanding and in the float?
Answer: The official number of Shares issued is 15,227,705 with an approx. float of 6,500,000 and the total number of authorized shares of 50,000,000
17. Discuss the relative significance of the various business units (Internet Banking/SecureNet-Plus Network, Internet lotteries, casinos, sports books, shopping malls, future others, etc.) in terms of facilitating the schedule for a NASDAQ Listing.
Answer: We are a processing company. In each of these areas our system is able to process funds in and out for customers. It is expected that WINR will retain a significant share in the processing of legal Internet Gaming with the customer support of the casinos registered increasing. In addition, it is expected that the processing and site development of the SecureNet-Plus network will add significantly to the profits of the company. Advertising, processing and link revenue will be received for listings on the Network site.
18. The PR states...have jointly announced the formal release of the Internet Banking software (SW).... What does that exactly mean? Can the banks buy it now from the shelf? Do you (WINR/CMS) now have to hire sales rep's to sell the SW? Or what?
Answer: The software rights were sold to the CyberLink Group for their exclusive use and development. WINR expects to share in all processing revenue from the operation of its system and the Network site for SecureNet-Plus. The CyberLink will be a cornerstone for the financial processing. It is expected that other financial sites for processing will be added.
19. How about demand for your SW? Especially in Germany absolutely ALL known banks offer today a secure banking SW via the INTERNET. You can transfer money/funds, you can check your account and you even can buy and sell stocks at almost every bank in Germany. What is the big advantage of your SW and why should the banking community buy it?
Answer: The software recognizes the world market for financial transactions. In interacts in nearly all world major currencies, provides a ready processing system that has its unique security and safety standards, and acts as a one stop shop for your financial activity. It is not necessary to have your credit card used daily on the Internet with many vendors. WINR can be the anchor for the customer to be comfortable with safe processing with all approved vendors and financial groups. It seeks to provide a financial network unto itself for processing. In addition, the unique asset management trusts available in Liechtenstein offers a very competitive edge in world financial markets.
20. Who do you see as WINR's competition? Any comments about CyberSource's recent IPO?
Answer: There is currently no other company online that provides the full service that WINR does. There are other online processors from the Caribbean that provide ‘processing in' but we are the only company that provides ‘full service' to our vendors and clients being we ‘process in' in all major currencies and also ‘process out' in all major currencies. I have reviewed the financials from Cyber Source and have no comment on that company
21. When are we going to receive feedback on our applications for WINR's Debit Card? Answered, Question 2.
22. How are the new WebPages coming along? Do you have an exact date of when it will be activated?
Answer: The new web pages are being extensively tested and should be released between July 15-20th.
23. Some have mentioned that banks may be a bit skittish about dealing with a company that has some interests in the gaming industry given their conservative nature. Has there been any negative feedback concerning this subject and if so, what are your plans to alleviate them?
Answer: We are very mindful of the status of Internet Gaming. We expect that the regulations for Internet Gaming from the USA market to be very limiting. However, we process currently in over 15 other legal gaming jurisdictions around the world. We are a processing company and are able to immediately curtail any activity throughout the world in a matter of minutes. A major advantage to our system is the ability to stop any activity that would be detrimental to the profitable operation of the company. It is also well recognized that Internet and other forms of Gaming are rapidly being approved in many worldwide jurisdictions as being an acceptable business. We feel that properly managed and third party processing that we do add to the credibility of the industry and our company.
24. Has WINR by selling the banking software lost the opportunity to enter into agreements with other banks to use the banking software?
Answer: We made a decision that to be part of an Internet bank by handling the processing exclusively coupled with being the sole processor for the SecureNet-Plus Network outweighed any other decision. We are a processing company and feel that concentrating on the processing from Europe is to our best advantage. It also does not curtail all of the other software advancements we are making and the other markets for processing.
25. Is being based in a tax haven being a good location for a bank in view of the fact that such banks are normally used by tax evaders and other crooks?
Answer: This is not the case. Liechtenstein has the highest standards as adopted with the International Banking Community. It will not protect criminals or those using banking to violate any law. The banking community has adopted many of the Swiss standards for banking, and is considered to have some of the finest banks and investment trusts in the world. Remember that we are a processing company only and not a bank. We are sure that the CyberLInk Group through Ernst&Young will adhere to the highest of all standards.
26. Beyond the inevitable bugs of startup, what kind of feedback are you getting from client companies that have used WINR's products and services for a while? Are clients generally happy? Is WINR saving them time and money? Is WINR viewed as a means to facilitate growth of their business? What are your expectations of current clients being repeat customers? Also of WINR's products being able to sell themselves after a while as a result of satisfied customer word of mouth? Beyond WINR's clients, how is WINR being received by client's individual customers (WINR account holders)? Any specific examples would be greatly appreciated
Answer: WINR has gotten very positive feedback from our ‘vendors' and our registered users. We did, as all new companies do, have a few ‘bugs' that have been completely removed from our system and are always improving our software. We are also working with our existing clients in other e-commerce ventures…and I don't think they would expand on our business relationship if they weren't happy with our services.
27. In the interest of staying ahead of competition could any parts of the plus network that may be ready be started in the present banking structure if the new bank is not ready to go?
Answer: We are currently working on that aspect of the network. We plan on putting up an information site very soon.
28. Were any more shares issued in the new venture?
Answer: There have been no shares issued at this time
29. Are there any warrants, convertible bonds, or options existing or proposed that would cause share dilution?
Answer: Columbia Financial has Warrants that have not been exercised and we have no proposed warrants, options or convertible bonds proposed.
30. Is a reverse split being considered (pray that it is not)? Not suggesting just want them to know not to consider it.
Answer: We have not considered a ‘reverse split' or had any discussions about this.
31. Is Winr considering buying back some shares?
Answer: This item has been discussed by the company and no decisions have been made as of yet.
32. It was posted on the threads and said by Kevin at CFG as early as the 5 Th of May that earnings would be up. Is this because the money received for selling the rights to the banking software included in these numbers?
Answer: We are currently providing all necessary information to our CPA for our Q2 report and once it is completed it will be released in detail.
33. In the previous news release Mr. Skinner said that banking had always been one their goals. If so is he considering splitting the entities and have a different name for each one? Winr is a good name for the gambling side of the business but it is not very appealing for banking side and E-commerce side.
Answer: This is under consideration at this time. No final decision has been made.
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On initial review and study of these responses I am very pleased. I won't go into details now about what I like most. But If this doesn't move the price substantially in the morning I will use the rest of my dry powder to buy more. As always....
Best Wishes,
Swedelo |
