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Global Net Entertainment Corp -
Global Net enters into lottery JV in Cambodia
Global Net Entertainment Corp
GET
Shares issued 8,865,256
1999-12-09 close $1.2
Friday Dec 10 1999
Mr. Scott McDougall reports
Global Net Entertainment has entered into an agreement with the Royal Group
and Gamex Inc. to form a joint venture entity for the purpose of operating lotteries
in Cambodia.
Under the terms of the agreement, Global Net (Barbados) Inc., a wholly owned
subsidiary of Global Net Entertainment Corp. will receive a monthly fee of
$20,000 (U.S.) and 70 per cent of the net profits during year 1 and year 2. During
years 3 through 22, the company will receive a monthly fee of $25,000 (U.S.) and
62.5 per cent of the net profits. Global will invest an estimated $150,000 (U.S.) to
$250,000 (U.S.) to finance the start-up costs of the lottery.
The Royal Group is based in Phnom Penh, Cambodia, and has a lottery licence
that authorizes it to operate lotteries throughout Cambodia. Furthermore, the
Royal Group is authorizing the exclusive perpetual use of the lottery licence to the
new joint venture entity for the period of 22 years and/or the life of the licence,
whichever alternative is the longest.
The Royal Group is made up of 11 subsidiaries and is the largest Cambodian
owned and operated company in Cambodia. Its largest and most profitable
company is Mobitel, Cambodia's leading wireless telecommunications company.
Mobitel services more than 160,000 subscribers and has over 600 retail locations.
It is planned that these retail outlets will serve as the first distribution channel for
the lottery tickets.
Julius Csurgo, chairman and chief executive officer of Global Net Entertainment,
stated, "This agreement is a direct result of the previously announced exclusive
strategic partnership with Gamex, Inc. to provide the company with marketing and
project development management services. We expect the relationship to be a
great asset to our international marketing efforts."
Gamex Inc. is based in Nevada and is currently designing a casino operation in
Guinea, West Africa. It is also in final discussions with two Southeast Asian and
one African country for lottery and casino licences.
Mr. Csurgo also announced that subsidiary Global Net (Barbados) Inc. is
planning to have 50 video lottery terminals installed in Puerto Cortes, Honduras,
the busiest port in Central America, before Christmas. In addition, the company is
in the process of turning two letters of intent into separate binding agreements that
will involve the installation of 200 retail lottery terminals in Honduras and
Nicaragua respectively. The company's on-line gaming subsidiary, Global
Netertainment Corp. of St. Kitts, is currently in the final stages of evaluating
software options for its launch of an on-line casino and sports book in early 2000.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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