Attention Business Editors:
Dion files court action
Dispute over rights to interactive TV bingo
VANCOUVER, Sept. 30 /CNW/ - Border Capital Corp. (ASE:BOP) (``Border')
reports that following the expiry of a settlement with Dion Entertainment
Corp. (TSE:DIO) and other parties, previously reported August 21st, 1999, a
court application has been filed by Louis Dion, Leo Dion, president of Dion
Entertainment Corp., and other related parties on September 28th, 1999
requesting an injunction against Border and its related parties. The
application, if granted, could have the effect of impeding Border's ability to
deal with the BingoNet(R) patents. As a result of this action, Border has
been prevented from closing any financing to complete its acquisition of
BingoNet, Inc. on the September 30th, 1999 deadline; however, the April 14th,
1996 assignment of the BingoNet(R) patents and the April 16th, 1996 patent
venture agreements remain in force with a prepayment of US$300,000 on account
of the minimum annual royalty due April 14th, 2000 to BingoNet, Inc.
Recently, Dion Entertainment Corp. has made various announcements and has
received substantial media coverage about plans to launch an interactive TV
bingo game show, which management for Border considers to be a potential
infringement of the BingoNet(R) patents. Border did not grant the master
patent license contemplated by the recently expired settlement, as the Dion
Group (comprised of Dion Entertainment Corp. and other related parties) were
unable to meet certain financial commitments or settle the terms of the master
license as contemplated in the settlement.
Management of Border views the Dion court action as an attempt to
restrict its business opportunities, which appear to have become the
undertaking of Dion Entertainment Corp. The court claims will be strongly
contested. In the view of Border, the Dion claims are entirely without merit.
Border has engaged legal counsel to not only defend its position on the
pending court application, but also to finally resolve all outstanding issues
with the Dion Group that have plagued the company for the past three years.
Louis Dion and BC based MCG Millennium Capital Group Ltd., members of the
Dion Group taking action against Border, are contractually obligated as agents
to present all gaming opportunities and TV bingo game show business to the
patent joint venture between Border and IBC Investments Limited. To date the
agents, despite recent announcements by Dion Entertainment Corp., have
presented no opportunities to the venture. Border is conducting an
investigation of the circumstances surrounding the apparent conflict of
interest of its agents and the business opportunities announced by Dion
Entertainment Corp.
Border Capital Corp. is an interactive gaming systems company, with
unique technology, protected by US and International patents and patents
pending. Border is also a joint venture partner in a licensed gaming facility
located in Fredericton, New Brunswick. |
