Hardrocker,
I had some time this evening and saw your post with questions regarding what values may exist within AGTI.
1. To the best of my knowledge the Sonic Bingo project is dead. Even if it could be revived, I think MGAM's MegaMania and Worldlink's Rocket Bingo simply has to great of a head start.
2. The Thompson Group deal related to bingo over in the UK. As I have previously posted electronic bingo simply offers no advantage over there due to the daily spending limits. Understand that electronic bingo is purely designed to allow the player to spend significantly greater sums by playing more card faces. Until these spending limits are eliminated or significantly raised there is no market for electronic bingo systems in the UK.
3. The BTC licensing deal is supposed to provide a minimum of $350,000 per year in revenue.
4. There may be a very few bingo facilities utilizing the Max Lite, but I do not know that even these will be able to be maintained. It is common knowledge that they have no staff to service their accounts. However, there still may be some revenue coming in from these handheld accounts.
5. I have been unable to determine if their patents contain any real value. There has been some industry interest in them, but there is competing technology and possibly some legal disputes regarding the patents. In my opinion the value would be limited at this point.
6. The company does have a valuable tax loss carry forward. I think shareholders need to remember that they will rank at the bottom of the priority list as the court considers any reorganization plan. The highest priority will be Dan Scott, given that he has provided the post bankruptcy financing. It could be a very good deal for him, as he can convert his debt to new equity, eliminate debt as well as the tremendous amount of outstanding shares. He is left in control of a clean company with some revenue and a significant tax benefit. He could then take the company into other ventures, etc. I have heard that he is a very astute businessman, which is to say that he has his own agenda and more power to him. Clearly he is taking a significant risk as he is putting up personal funds.
Unfortunately, I do not see how the court can satisfy Mr. Scott and his post BK financing, outstanding obligations to creditors and employees and still have much if anything for existing stockholders.
I am probably inviting a firestorm, but I was asked for an opinion. Most of this post is opinion, as there are few real facts available, though I probably have more knowledge than others given my involvement within the bingo industry. (Yes, I do distribute a competitors product). At any rate those are my thoughts and opinions at this time.
tgs59
|
