Advanced Gaming Technology Inc. Announces Signing of Definitive
Agreement With Bingo Technologies Corporation
PR Newswire - February 27, 1998 09:30
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VANCOUVER, Feb. 27 /PRNewswire/ -- Advanced Gaming Technology, Inc.
(OTC-BB: AGTI) today announced the signing of the Definitive Agreement for its
Financing, Royalty and Licensing Agreement (Agreement) with Bingo Technologies
Corporation (BTC). In addition, the Company is finalizing a Purchase
Agreement with BTC regarding existing halls, inventory and pending orders,
whereby AGT will realize quantifiable gross benefits in 1998 of approximately
US $5,000,000, including royalties, licensing fee and reduction of costs.
The Company's initial phase of restructuring is complete with the
finalization of this Agreement, coupled with the appointment of Mr. Tom Nieman
as Chief Executive Officer (news release d/d 11 February 1998.)
The BTC agreement represents AGT's first U.S. licensing agreement,
affording several benefits to the Company:
-- Injection of US $1,500,000 by way of a Licensing Fee;
-- 15% royalty on gross revenues generated by BTC from leasing AGT's
MAX(PLUS) and TurboMAX in the U.S;
-- 25% commission on all orders generated by AGT;
-- 40% reduction in overhead by assignment of the distribution centre in
Denver and Cleveland marketing office;
-- Elimination of capital expenditures required for installation and
service of MAX(PLUS) and TurboMAX;
-- Substantial market penetration of MAX(PLUS) and TurboMAX in the U.S.
With finalization of the BTC Agreement, the Company will focus on:
-- Introduction of PartiMAX, the first ever bi-directional handset for the
United Kingdom's $1.5 billion bingo industry. A pilot programme will
commence with the installation of PartiMAX in commercial clubs in the
U.K. during the first half of this year;
-- The completion of development and launch of Sonic Bingo, a fast-paced
multi-site progressive game, in the U.S.;
-- Development of Company's library of patented Prisms Technology, the
first software game of which is Sonic Bingo plus five additional new
games being designed for market introduction over the next 18 months;
-- Entering into marketing and distribution agreements for the MAXLITE
hand-held units for the U.S. market;
-- Licensing of MAX(PLUS) and TurboMAX for markets outside the U.S;
-- Complete the next phase of restructure which is expected to further
reduce corporate overhead.
Tom Nieman, Chief Executive Officer, states, "... with Management having
completed the transaction with BTC, the Company is now set to launch PartiMAX
and Sonic for 1998. We believe these new products have an opportunity to
impact the world gaming market on behalf of AGT. We intend to have a revised
business plan and financial projections presented at the next annual meeting
of shareholders that reflects the Company's primary goal to create a positive
operational cash flow. The Company would like to take this opportunity to
recognize Mr. Robert C. Silzer, Sr. for his contribution to the Company over
the past four years. Mr. Silzer has stepped down as Chief Executive Officer,
effective February 15, 1998, however he will continue to serve as a Director.
We wish him the very best in his new endeavours."
Information provided herein by AGT contains, and from time to time AGT may
disseminate materials and make statements which may contain "forward-looking"
information, as that term is defined by the Private Securities Litigation
Reform Act of 1995 (the "PSLRA"). These cautionary statements are being made
pursuant to the provisions of the PSLRA and with the intention of obtaining
the benefits of the "safe harbour" provisions of the PSLRA. AGT cautions
investors that any forward-looking statements made by AGT are not guarantees
of future performance and that actual results may differ materially from those
in the forward-looking statements as a result of various factions, including
but not limited to the contingencies noted above.
Advanced Gaming Technology, Inc. creates, designs, markets patented and
proprietary gaming systems and software including technologically advanced
electronic bingo systems. The Company is a major supplier of electronic
gaming systems, offering increased play potential and revenue to gaming
operators. Its stock trades under the symbol AGTI on the NASD Electronic
Bulletin Board.
SOURCE Advanced Gaming Technology, Inc.
/CONTACT: Advanced Gaming Technology, Inc., 614-689-8841/
(AGTI) |
