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Starnet Communications Finally Sells Its Adult Entertainment Division23 March 2000Starnet Communications International Inc. (OTC-BB: SNMM) said today that it signed a definitive asset purchase agreement for the sale of its adult entertainment division. The buyer was identified only as a Canadian limited company, 596773 B.C. Ltd. Starnet said 596773 B.C. will pay $2.8 million over a three-year period. The first payment, for 20 percent of the total, is due tomorrow. The buyer has no affiliation with Starnet or its current or former employees, the company said. Starnet began as an operator of Internet porn sites. It used the cash flow from that business to finance its research and development of online casino software. The company is a major provider of the software to licensees, and also operates several of its own online casinos. About a year ago, Starnet officials began saying that they wanted to exit the porn business and focus on gaming. That effort became more urgent after Canadian authorities raided Starnet's headquarters in Vancouver, British Columbia, in August. The police said they were investigating alleged violations of both gambling and pornography laws. Shortly after the raid, Starnet moved its headquarters to St. John's, Antigua. |