The following is a recent interview between Mondial Investors Services Inc.
and Mr. Kim N. Hart - CEO, Sungold Entertainment Corporation
(sggnf - nasdaq otc:bb):
We understand that you will shortly be launching Horsepower2.com for real time cash betting. Can you give us some
idea of timing?
Kim Hart: Surely. We are well on schedule and will effectively be commencing operations by the end of this month. Please
understand that this is totally new, and Horsepower2 controls the patent for equal chance virtual horse racing. Internet gaming
is the fastest growing sector within the international gaming market, and Horsepower2 is the first major new game that has been
designed for the Internet market. Horsepower2 draws on the unique strengths of the Internet by offering a game in real time,
that generates a common pool worldwide, plus a progressive jackpot with a potential payout every 90 seconds.
Whereas lotteries such as Powerball have superb revenues, you have to remember that it is in 11 states [USA] only.
Horsepower2 on the other hand is international, offering approximately 900 races per day.
For example, in Hong Kong the racing fans wager on approximately 1000 races per year creating revenues of US$12
BILLION and racing isn't even offered during the summer time due to hot weather. We can only speculate what revenues will
be possible with worldwide wagering on 12,000 virtual horses per day in real time into one common pool.
At what point do you envisage accepting Visa, MasterCard, and American Express for wagers?
K.H.: All is in place to initiate service by the end of this month. Horsepower2 will be offering VISA, MasterCard, American
Express and wire transfer through Surefire payment processing [FIR - TSE]
I understand you have recently purchased the SafeSpending Internet Card system. Can you tell us where these cards will be
distributed?
K.H.: We are actively negotiating with major retailers and other points of sale. You will be informed when negotiations are
finalized.
Do you have any idea of revenues/earnings for the first year’s operations?
K.H.: In truth I would be speculating to give you an accurate answer. However, we are anticipating multimillion-dollar figures.
We understand that from each and every wager, up to 70% will be contributed to the jackpot. Any idea how big that jackpot
will be?
K.H.: Huge! Lotto, which is state by state, will pale beside our jackpot. I must remind you that this virtual wagering will be
taking place on a worldwide basis. Horsepower 2 will operate on a Sun Microsystems platform that will be capable of handling
millions of wagers per day. The firewall and security for Horsepower2 will be a leader in the industry.
What plans do you have to further advertise Horsepower2 to the gambling public?
K.H.: Horsepower2 is engaging in reciprocal promotions with other on-line gaming sites.
Horsepower2 will have a presence at selected racetracks around the world and will fill the 25-minute gap between live races.
The modern day racetrack already possesses the viewing monitors and ticket sellers necessary to present Horsepower2 to
racing fans. This allows the racetrack to diversify its revenue stream without incurring large capital investment. This will translate
into 10 to 12 betting opportunities between each race. Horseracing is the most popular form of wagering worldwide.
Unfortunately, there are never enough horses to fill the races needed to fulfill the wagering appetite of the betting public.
Breeding restrictions, injuries, bad weather and mystery virus problems only underscore the need for a reliable backup when
live racing is interrupted.
Do you see this game stacking up against the growing on-line presence in Las Vegas?
K.H.: We are two years ahead of them, or they are two years behind us, whichever way you want it. Look at it this way:
suppose you were the first to come out with slot machines, and had the sole rights to it, you would have to agree that you were
onto a winner. The exclusive patent on equal chance equal virtual horse racing will be the Internet equivalent to having the
exclusive rights to slot machines in land based casinos.
Do you have any investment banks or institutions looking to get involved as the stock price appreciates?
K.H.: Yes, I have been advised that a number of large family funds and investment banks that are following the evolution of
Horsepower2 and Sungold Entertainment Corp. very closely will be taking serious positions at the $1 level and up!
Are you planning any financing at a higher share price? Perhaps after NASDAQ listing?
K.H.: Yes, it is our intention to meet the criteria for full NASDAQ listing as quickly as possible, thus entertaining full
institutional investors and brokers.
Are there any restricted shares coming to free trading status within the next 3 to 6 months?
K.H.: No.
Is there anything else you would care to add before we close this interview?
K.H.: Timing is everything.
Horsepower2 is a unique equal chance virtual racing system designed for the Internet and, as such, enjoys dynamics that give it
an edge over on-line casino games. Everybody understands what a horserace is. At the racetrack, however, the player is
expected to understand racing forms, historical racing records, breeding statistics, workout figures, track conditions etc., but
not with Horsepower2. The Horsepower2 player simply buys a ticket on his horse or combination of horses by choosing a
lucky number or numbers, exactly or, in a combination with other numbers and awaits the result with alacrity. One race every
90 seconds, 900 races per day, 7 days per week around the world!
Does it get any better than that? With no debt, substantial assets and worldwide markets for its' products, we feel the Sungold
(SGGNF-BB) share price should be easily back over the $1/share level in little time.
Management is actively buying on the open market and has doubled their share positions in the past year. Sungold has
announced an official buy back, which will be implemented this year. Insiders and major blockholders presently own
approximately 40% of the outstanding shares.
Thank you very much for giving us your time, we appreciate it very much.
Good luck with Horsepower2’s launch!
K.H.: Thank you.
For further information, please contact:
Kim Hart, CEO
Email: khart@sungoldent.com
or
Anne Kennedy, Investor Relations
Email: akennedy@sungoldent.com
Sungold Entertainment Corporation
Tel: 604/669-9580
Fax: 604/669-9577
www.sungoldentertainment.com (corporate)
www.horsepowernetwork.com (gaming)
Watch for www.horsepower2.com, virtual racing for US dollars. |
