Here it is folks.
Advanced Gaming Technology Inc. and Sega Gaming Technology Inc. Sign Letter of Understanding
VANCOUVER, Canada, March 25 /PRNewswire/ -- Advanced Gaming Technology, Inc. (OTC Bulletin Board: AGTI), and SEGA Gaming Technology, Inc. (SGT) Las Vegas, Nevada today announced the signing of a Letter of Understanding whereby it was agreed:
-- AGT and SGT shall, by way of incorporation, form a new
company, to jointly develop and market innovative software
products to the gaming industry. The first such product will
be Sonic Bingo;
-- Sonic Bingo, as it has been designated during the design and
developmental stage thus far, is a fast-paced, progressive linked
speed bingo game for use in Class II bingo halls throughout North
America;
-- The new company shall license from Sega Gaming Technology, Inc. its
rights to use of the "SEGA" brand name, and it shall license from
Advanced Gaming Technology, Inc. its MAX Bingo System software,
Prisms patented game technology, and rights to use the "Sonic
Bingo" trademark;
-- Start-up capital has been contributed by both companies which will
facilitate incorporation and product development costs for Sonic
Bingo. Hereinafter, capital expenditures and revenues shall be shared
on a 50/50 basis. AGT and SGT, within terms of an earlier
preliminary agreement (May 1996), have already expended co-operative
funds towards development of ten (10) proto-types for Sonic Bingo.
AGT and SGT have employed Mr. James Hammer, previously Vice President Sales and Marketing for AGT, as Product Manager for Sonic Bingo. Mr. Hammer brings extensive years of experience in Class II and Class III gaming as a corporate executive.
The 1998 Business Plan for Sonic Bingo contemplates finalization of the design and development of Sonic Bingo, followed by a pilot programme with approximately one hundred (100) units linked between multiple sites in the U.S. Sonic Bingo is targeted to be launched for commercial use in late 1998, with the prospective market including Class II bingo halls, and in Class III venues throughout North America.
Sega Gaming Technology, Inc. with approval by its Board of Directors, has authorized a Purchase Programme of up to 5 million common shares (approximately 5% of AGT's issued and outstanding shares) in open market transactions as well as purchasing a portion by way of private placement with AGT.
Doug Sanderson, CEO, Sega Gaming Technology, Inc., states, "...Sonic Bingo is a game that we believe has the potential to bring a new level of play to bingo halls on a world wide basis...we have been working on this joint venture for a year...Sega looks forward to a long-term relationship with AGT."
Tom Nieman, Chief Executive Officer of AGT comments, "...Sega Gaming provides an important ingredient to development and launch of Sonic Bingo...We believe SGT's international marketing skills and strategic business relationships are a perfect fit for AGT's platform of software technology. This Agreement is consistent with AGT's new business strategy whereby the Company is exploiting its technology in joint ventures as well as licensing and
distribution agreements." |
