And this was their news release of two weeks ago:
TOLEDO, Ohio, Sept. 2 /PRNewswire/ -- NorAm Gaming and Entertainment Corporation (Nasdaq:NRAG - news) announced today that the company has successfully negotiated an increase in the market share of the Cojedes lottery project with NorAm's Venezuelan joint venture partner, Lymca.
The lottery announcement (8-26-97), for the Cojedes lottery project limited NorAm to electronic video lottery sales within the state of Corjedes, Republic of Venezuela. Annual sales and net income projections for that agreement were estimated at $10 million and $2.5 million, respectively.
Following a meeting in Miami, Florida, on Sept. 1, 1997, between the principals of NorAm and Lymca, an agreement was signed whereby, NorAm will receive a 50% share of all Cojedes lottery sales throughout the Republic of Venezuela.
This new arrangement will increase the population exposure for lottery sales from a single state, to 23 states and the city of Caracas, with a total population of 23 million.
George C. Zilva, CEO, NorAm, and Federico Fernandpoez, CEO, Lymca, have conservatively placed the new annual sales and net income projections for the Cojedes lottery, NorAm/Lymca joint venture at $40 million gross annual sales and $10 million net sales to the joint venture.
According to the investment publication, ``Inversiones Venezuela,'' April, 1997, legal lottery sales in Venezuela are estimated at $1 million per week and illegal lottery sales average approximately $9 million per week.
NorAm/Lymca expects to capture between 15%-20% of the total lottery sales in the major cities of Venezuela by the 12th month of operations. This market share is expected because of the introduction of electronic ``touch screen'' video terminals by NorAm/Lymca. Presently, all lotteries use paper ticket sales.
In return for the increase in market share relinquished by Lymca, NorAm has agreed to include Lymca as a future partner in the NorAm internet bingo project slated to kick off by the first quarter of 1998, and warrants for the purchase of shares of
NorAm common stock.
SOURCE: NorAm Gaming and Entertainment Corporation |
