CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!

Gaming News

 

Advanced Signs Agreement With Bingo Technologies Corporation

9 March 1998

VANCOUVER -- Advanced Gaming Technology, Inc. (OTC-BB: AGTI) has signed an agreement for its financing, royalty and licensing 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.

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 US
  • 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 UK 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 US
  • 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 US market
  • Licensing of MAX(PLUS) and TurboMAX for markets outside the US
  • Complete the next phase of restructure which is expected to further reduce corporate overhead.

"With Management having completed the transaction with BTC, the company is now set to launch PartiMAX and Sonic for 1998," said AGT CEO Tom Nieman. "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."

< Gaming News