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News article received, Thursday, August 05, 1999 5:40:17 AM EST
IGC SUBSIDIARY SELLS SCIBAL ASSOCIATES FOR $1,800,000 TO FUND TOTEMASTER(TM)
PLYMOUTH MEETING, Pa., Aug 5, 1999 /PRNewswire via COMTEX/ -- Interactive Gaming & Communications Corp. (IGC) (OTC Bulletin Board: SBET) a Philadelphia area Internet software technology company announced today that its subsidiary, Century Industries, Inc. (CNTI) has sold Scibal Associates Inc. for $1,800,000 in order to further the development of the ToteMaster horseracing wagering program as previously stated by Century.
The total consideration received was $600,000 in cash, $1,200,000 in periodic payments covered by a promissory note and guaranty, and the return of 760,000 Class A shares of Century Industries, warrants for the purchase of 50,000 Class A shares, and warrants to purchase 727,273 Class B shares, as well as the forgiveness of certain inter-company debt for a totaldollar consideration of approximately $4,500,000 if the returned shares ofCentury were valued at the prices struck at the time of Century's purchase of Scibal Associates three years ago, and $2,308, 000 if the returned Century shares and warrants are valued at the closing market prices on July 26, 1999.
Mike Simone, President & CEO of IGC, said, "This divestiture is in keeping with the company's business plan for the newly combined companies with the proceeds being reinvested into development and completion of our gaming product lines. Primarily, funds will be used in our newest and most exciting project, ToteMaster, an online live horseracing wagering and simulcasting system to be completed later this year."
IGC's wholly-owned subsidiary, Intersphere Communications Ltd. (http://www.intersphere.com), is an Internet software and development company which markets its LiveAction casino games, race and sportsbook software to online or land-based casinos and Thoroughbred Race tracks. Intersphere also operates Play for Fun.com (http://www.playforfun.com), a free prize-based casino web site which it also private-labels to companies who want to offera unique entertainment experience to their user base.
Additionally, the company operates two portal sites called Gamblenet (http://www.gamblenet.com), and Who Won Where.com (http://www.whowonwhere.com). catering to the casino industry. Intersphere's clients include Metro-Goldwyn-Mayer Inc. and Comcast Communications, among others. For more information about Interactive Gaming & Communications Corp., visit their web site at igccorp.com.
SOURCE Interactive Gaming & Communications Corp.
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