Phil,
This is long but interesting. Recieved it Friday.
VentureTech Inc. is in the process of developing the ultimate on-line gaming
experience for our clients. We will be notifying you when the virtual
casino goes on-line. Please keep looking for exciting upcoming news release
from VentureTech Inc.
For further questions, please e-mail Art Rosenberg at artrosen@ix.netcom.com.
We have included our most recent executive summary for your review.
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VentureTech Executive Summary
The Company
VentureTech Inc. is a US public company which trades on the NASDAQ OTC -
Trading Symbol VTEH and is registered by Moody's. VentureTech, Inc. is a
venture fund that provides the investment mechanism for investors seeking to
profit from the spectacular growth associated with start-ups in the high
technology sector. The intent of the Company is to identify and
commercialize - either via public offerings, mergers or selling - leading
edge technologies for established markets and thereby generate above average
returns and capital gain opportunities for VentureTech's shareholders and
investors. The total Company focus is on the identification and
commercialization of leading edge technologies. More information on
VentureTech and its operations can be obtained from its Web site at:
vteh.com
ecasino.com
The corporate objectives of VentureTech are to maximize earnings and
generate significant wealth for its investors and shareholders by:
Identifying, acquiring control, and incubating those companies that possess
leading edge technologies capable of generating above average returns;
Merging, selling or taking public those companies and technologies which are
market ready; and Continually seeking profitable synergy between leading
edge technologies and emerging market opportunities.
The investment opportunity for shareholders is in the complementary revenue
streams and benefits generated through investment in VentureTech itself and
in its emerging public companies. For shareholders of VentureTech, these
benefits consist of:
- The share appreciation in VentureTech as it executes its venture
funding/incubator mandate and generates continuous profits through these
ventures.
- The dividends, shares, options or warrants which shareholders receive in
each new public company.
VentureTech's Portfolio
Presently, the main components of VentureTech's portfolio are its two wholly
owned subsidiaries, EuroAsian E-Casinos Inc. and Cybernet Currency Clearing
Inc. The focus of these businesses is the establishment of full service
gaming casinos on the Internet. Both of these opportunities are capable of
generating significant revenue opportunities for VentureTech shareholders.
E-Casinos features the Internet gaming interface and games while Cybernet
Currency Clearing intends to provide the secure financial transaction
process and mechanism for converting electronic funds into dollars.
E-Casinos and Cybernet Currency Clearing are set to launch early in the
first half of 1997 with casinos operations located in various international
jurisdictions.
In addition to EuroAsian E-Casinos and Cybernet Currency Clearing,
VentureTech until recently owned an innovative technology for solving snow
and ice removal problems. Pulverizer Systems Inc. (PSI) is the developer of
the Pulver-icer Snow and Ice Removal Unit, the only known mechanical means
of removing ice or hard packed snow down to bare pavement. The removal of
snow and ice during the winter is a worldwide multi-billion dollar industry
with North America alone spending over $2 billion per year on snow and ice
removal. On March 14, 1996, VentureTech reached an agreement in principle to
sell PSI to Kaniksu Ventures Inc. (NASDAQ OTC Symbol: KNKV) a $3 million
convertible debenture to VentureTech. As part of the transaction Kaniksu
Ventures Inc. will also issue 5 restricted shares with 10 attached 60 day
rights to purchase Kaniksu restricted shares at $2.25 to each VentureTech
shareholder of 100 shares for shareholders of record on April 5, 1997.
Gaming on the Internet
Market Opportunity
Gaming on the Internet is a natural evolution of man's fascination with
gambling - in fact gambling has been called a "universal urge". Legalized
gambling is one of the fastest growing industries in the world. Legal
gambling in the US is a $482 billion industry and generates gross revenues
of $40 billion for its operators. This makes gambling easily bigger than the
entire US media industry including motion-pictures, newspapers and the
recording industry . The number of people that visit gambling casinos (125
million) is second only to attendance at amusement theme parks (146 million)
and is almost double that of the 70 million people who attended major league
baseball games. Worldwide, it has been estimated that in excess of a
trillion dollars is wagered annually on the various forms of gambling. For
example, in Great Britain over 90% of the population participates in some
form of legalized gambling and Australians wager almost $2,700 per capita
annually on gaming entertainm!
ent.
When the universal appeal of gambling is combined with the size - estimated
to be in excess of 40 million - and the growth - the number of people
connected is doubling in every year - of the Internet, it is apparent that
huge returns await those companies that can successfully tap into this never
before reachable market. Internet gaming appears to be the first Internet
"killer application" and has the potential to make other investment
opportunities pale by comparison. For example, while it is estimated that
Internet gaming revenues are now less than $100 million, analysts estimate
that it is a $40 billion industry waiting to happen.
Conservative estimates for the Internet gaming market in the US (for
comparison purposes only) project a total potential market of $22 billion by
1998. Internationally, market estimates for Europe and the Far East project
potential markets of $2.94 and billion and $7.2 billion respectively.
VentureTech has targeted the international market opportunity with the first
half of 1997 launch of E-Casinos Cyberspace virtual casino trip.
VentureTech's EuroAsian E-Casinos Inc.
EuroAsian E-Casinos (E-Casinos) expects to launch in the first half of 1997
with a full range of Internet gaming services that will be available on the
Internet and open to individuals interested in playing for real money on a
world wide basis. The virtual casino will ultimately offer a cross-section
of games including blackjack, craps, roulette, poker, baccarat, keno, bingo,
lotteries, and some specially developed games of chance. E-Casinos will
operate under strict guidelines and laws to assure fair and equitable gaming
opportunities for its Internet clients. E-Casinos has established an
Internet website to demonstrate its E-Casinos at ecasino.com or vteh.com.
E-Casinos is a partnership comprised of an interdependent combination of
related technologies and exclusive licensing arrangements that provides a
complete business model for the establishment of an Internet virtual casino.
The strategic partners and technologies include:
An arrangement with CasinoWorld Holdings, Ltd. (CWH) to provide the
interactive gaming services for its "virtual casino". CWH is a San Diego
based software development company that utilizes the MindWireTM development
platform created by Durand Communications Network (DCN). MindWireTM is a
completely open architecture development platform and protocol which builds
on top of Microsoft's Windows, Windows NT and other Microsoft development
languages. MindWireTM is a true Internet "client-server" operating platform
that does for the Internet what WindowsTM did for DOS. MindWireTM recently
earned the coveted 1995 John C. Dvorak award for PC Telecommunications
Excellence and has been featured on the cover of several industry
publications. As CWH and DCN have had extensive experience in providing
software solutions to information providers in almost every PC based
information market, VentureTech is comfortable in saying that its virtual
casino will set the standard for Internet gami!
ng;
- CD-MAX's proprietary CD-MAX technology, for securing financial
transactions on the Internet. CD-MAX is a US public company that trades on
the NASDAQ Bulletin Board - Trading symbol - MAXX-OTC. The company holds
patents on a technology that allows CD-ROM publishers to distribute data;
bill subscribers on a "usage" basis and protect the data from being copied
or re-transmitted. This technology is already established in the CD-ROM
industry, endorsed by Standard & Poors, Thomson Publishing, and many
prominent others, and has been adapted for Internet use;
- The Company will provide its Internet casino offering from various
authorized jurisdictions around the world. These authorized jurisdictions
will be provided with secured transaction processing, international bank
account management and technical administration. The Company will also
utilize the services of a top accounting firm to verify all transaction and
financial processes.
- The selling of E-Casino licenses on a country by country basis:
substantive discussions have commenced with interested parties in Cyprus,
Malaysia, Singapore, Turkey, Monaco, South Korea, Taiwan, Hong Kong, and Macao.
- Becoming the leading supplier and operator of casino related games on the
Internet and Intranets.
- VentureTech's aggressive projected revenue growth and the above average
shareholder returns associated with E-Casinos are consistent with the growth
curves and opportunities projected by others involved in interactive
services and electronic commerce on the Internet.
Competition
The market for interactive gaming services over the Internet currently
contains limited companies offering interactive gaming for "real" money. The
companies in this fledgling industry are characterized as being small
players, under funded, low credibility utilizing a single technology and
with limited contacts in the international arena. It is projected that most
of these companies will fall by the wayside with only a few dominant players
remaining. Wits access to the substantial funding needed to market the
service world-wide, its visibility in the interactive community and its
licensing of diversified technologies, VentureTech expects to be the premier
provider of Internet and Intranet gaming services in the world.
Market Strategy
VentureTech's goal is to make its virtual casinos the de facto standard for
Internet gaming. The Company's strategy includes the following key elements:
- Leverage Relationships with Leading Strategic Partners. To accelerate the
acceptance of the Company's products and ensure that rapid dissemination of
its operations, VentureTech has developed strategic partnerships with
leading gaming, financial services and government partners with the intent
that:
- CasinoWorld Holdings will provide the software for the casino games and
operational expertise which will facilitate the introduction and
establishment of E-Casinos world-wide.
- CD-MAX will provide the secure financial transaction software through its
proprietary technology.
- Cybernet Currency Clearing will provide the conversion mechanism for
conversion of digital dollars to paper currency and vice versa.
- Telephony software developer Monacall s.a.m. L'Univers Telematique of
Monaco will provide an interactive platform that will utilize Monacall's
Interactive Voice Response [IRV]software for secure transaction processing,
international bank account management, and technical administration
via Monaco. The joint venture will provide facilities in Monaco, telecom
bandwidth, Tandem banking servers, business license, Monaco operating
approvals, banking relationships and expertise. This gives E-Casinos a
distinctive image in the marketplace. This image offers legitimacy and
exotic appeal to those gamblers not located in Europe and offers the
European gamblers the comfortable feeling that E-Casinos gambling operations
are located in an established venue close to home.
- Offer Internet gaming that is comprehensive, easy-to-play, financially
secure, state-of-the-art and credible. As Internet gaming is a relatively
new form of entertainment, it is important that E-Casinos provides a
complete gaming experience for the gamblers, many of whom will be new to
the Internet. To address these issues, EuroAsian Casinos will offer:
- State-of-the-art, easy to play Internet games. VentureTech's relationship
with CasinoWorld Holdings to provide their Internet gaming expertise and
casino game development skills, means E-Casinos will provide the best
possible gaming environment. The graphical interfaces and game mechanics
will allow gamblers to understand and play the games immediately.
Secure Financial Transactions.
The Company's utilization of the CD-MAX proprietary technology provides
E-Casinos with a proven financial transaction mechanism.
Credible Internet Gaming
A key factor for the success of E-Casinos will be the provision of secure,
legitimate and credible casino gambling. Through participation of the
various partners, and its corporate commitment to ethical business
practices, the objective of the company is to provide a fair gambling
environment for its patrons.
Expand internationally through licensing the marketing rights for E-Casinos
to local investors and partners: Recognizing that local presence and
majority ownership is essential for the marketing and promotion of Internet
gaming in local markets, VentureTech will form licensing partnerships with
native investors in countries wherever possible. While the urge to gamble is
international, each region has its own preferences as to how gaming is
promoted and marketed. VentureTech will rely on its local partners for the
financial resources to properly promote E-Casinos in their respective
regions and their acumen to market Internet gaming to individuals within the
region. These funds will be used to modify and establish a unique Internet
casino utilizing local languages and virtual decor. The remaining funds will
be used as working capital for E-Casinos' expansion and software development.
Summary of Market Size and Financial Projections
With the worldwide gaming market for authorized wagering exceeding an
estimate $1 Trillion dollars, industry analysts are anticipating a $10 - $40
Billion or greater online market within five years. E-Casinos believes it
can ultimately capture a minimum of 2-3% of this lucrative market. With its
completed financing in hand, VentureTech is projecting net incomes in the
range of $31.5 million to $120 million through the year 2000. These
projections are based on VentureTech's assessment of market conditions and
circumstances and could vary with changes to the worldwide online gaming
environment.
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VentureTech and NASDAQ
VentureTech has immediate plans to become a listed public company on NASDAQ.
The company has started the proceedings to achieve such a listing and
anticipates approval by April 1997 or sooner.
Management
Strong management is essential to the success for any young business, and it
is especially critical for VentureTech because of its varied product
offerings and potential for high rates of growth. VentureTech's present
management team is fully capable of realizing this potential and producing a
high return for its investors. Management also recognizes the need to draw
on the strengths of capable and experienced advisors and consultants to
endure the best possible performance and will be expanding the management
team in 1997.
The following table sets forth the name and position of each of the
directors and officers of VentureTech.
NamePosition with the Company
Kenneth F. Fitzpatrick - Chief Executive Officer and Director
Arthur Rosenberg - Chief Operating Officer
Craig Bampton - Vice President and Director
G. Michael Cartmel - Vice President and Director - Public Relations
John D. Wiedemer - Technical Advisor
Robert A. Wiedemer - Corporate and Technical Advisor
Philip J. Gross - Corporate Advisor
Directors and Management
Kenneth F. Fitzpatrick - Chief Executive Officer and Director. Mr.
Fitzpatrick has over 28 years of experience in the investment business. In
the last six years Mr. Fitzpatrick has owned and operated The VanSan Group
of San Francisco, an investment banking and corporate financing firm doing
business in the United States and Canada.
Art Rosenberg - Chief Operating Officer. Mr. Rosenberg brings eighteen years
of experience in financial, contractual, legal and investment matters to
VentureTech. Mr. Rosenberg has considerable experience in both large
corporations [IBM, Ford Motor Company, and Digital Equipment], as well as
small entrepreneurial enterprises. Mr. Rosenberg has served as a corporate
officer and CFO of a publicly held corporation which provided high
technology multi-media training to Fortune 500 companies. During his tenure,
the company achieved four straight years of growth in earnings and revenues.
Mr. Rosenberg has also served as the executive vice president of a software
development company, operated as a consultant to small development stage
firms and most recently was the CFO/COO of an entrepreneurial gaming venture
dedicated to implementing telephone wagering for state and international
lottery systems. Mr. Rosenberg holds a BA degree in Chemistry from
Northeastern University and an MBA from Boston College.
Craig Bampton - Vice President and Director. Mr. Bampton is currently
President of Intryst, Inc. [OTC: KNKV] and Pulverizer Systems Inc. (PSI) and
is responsible for commercialization of the Pulver-icer ice and snow removal
technology. Prior to PSI, Mr. Bampton was employed for almost 20 years by
Burlington Northern Railway (Manitoba) Ltd. and was a Regional Operational
Manager prior to founding PSI.
G. Michael Cartmel - Vice President and Director - Public Relations. Mr.
Cartmel is a self employed consultant to the investment community. Since
1991, Mr. Cartmel has acted in the capacity of Investor Relations for a
number of V.S.E. listed companies as well as companies listed on the NASDAQ
Bulletin Board.
John D. Wiedemer - Technical Advisor. Dr. Wiedemer is the creative force
behind the patented CD-MAX billing and security systems and is responsible
for developing and commercializing the company's technology. He holds four
U.S. patents that cover various aspects of computer software security, usage
billing and bill processing. Dr. Wiedemer earned his doctorate and master
degrees in economics form the University of Wisconsin-Madison, and his
Bachelor of Arts degree (magna cum laude) from the University of Pennsylvania.
Robert A. Wiedemer - Corporate and Technical Advisor. Mr. Wiedemer
co-founded Signal Security Technologies which was the predecessor of CD-MAX,
Inc. He assisted in the development of the CD-MAX technology and is now
responsible for the targeting of priority markets and business management.
Mr. Wiedemer holds a Master of Science degree in marketing form the
University of Wisconsin-Madison and a Bachelor of Arts degree (cum Laude)
from the University of Texas-Austin.
Philip J. Gross - Corporate Advisor. Mr. Gross has over 20 years of
experience in finance, information billing systems development, and security
systems. Mr. Gross is a former Chief Financial Officer of the
telecommunications firm, Phone Base Systems of Vienna, Virginia and former
Director of National Digital Corporation of McLean, Virginia, a digital
photo transmission company. He is presently Chief Financial Officer and
Director of CD-MAX and Director of Credential Information and Verification
Services of Rockville, Maryland. Mr. Gross is a Certified Public accountant;
Certified Internal Auditor and Certified Protection Professional. He holds
AB and MPA degrees from Syracuse University. |
