MDI Reports Good News
MDI Entertainment (LTRY) has received $3.2 million in equity financing from Corpfinance International, Inc. in the form of senior convertible preferred stock. Thanks to this deal, company officials say they've brought MDI into full Nasdaq compliance. Under the deal's terms, the new issue will provide for 8 percent dividends in stock or in cash at MDI's option. The preferred stock will be convertible into 2.1 million shares of common stock over a 13-month period in quarterly installments. "The fact that we have raised additional capital in today's difficult financial market is confirmation of MDI's success in building a business and delivering results. We look ahead with great optimism and our capital base is now sufficient to finance the explosive growth happening at MDI," commented Steve Saferin, MDI's CEO and president.
A representative of Corpfinance added, "While other companies around us continue to disappoint the markets with negative earnings, MDI has risen above the clutter and remains poised for growth. Corpfinance International, Inc. is committed to investing in companies that have increased revenue
potential, and MDI has demonstrated to us that potential and we are confident that this investment will prove to be a successful business endeavor."
MDI's Reports More Good News
Following news of its new equity financing deal, MDI was the subject of an investment opinion by Investrend Research. Analysts John Dutton and Jerry LaKarnafeaux, CFA gave the company a "strong buy" recommendation. MDI, currently trading at $2, is assigned a conservative 12-month price target of $5. The analysts add that significant positive news could cause the shares to substantially outperform this target price. Key factors for the company's growth are attributed to the strategic and financial relationships that MDI has made with Scientific Games (SGM) and eLOT Inc. (ELOT). In addition, MDI has attained more than a 90 percent market share for branded instant lottery games.
Investrend's free report on MDI is available online at www.investrend.com.
Arena Leisure Likely to Gain Value
Yahoo! reports that shares in Arena Leisure (ARE.L) will start trading again tomorrow when it reveals plans for raising £80 million to fund its media rights deal, valued at £400 million. The deal is part of a joint venture with Go Racing and Britain's 59 race courses. Trading of the company's shares were suspended last week while Go Racing, of which Arena owns 33 percent, hammered out last-minute details in the deal. On Thursday night tracks representing nearly two-thirds of all off-course betting agreed to join the media rights deal. A few smaller courses, in the meantime, have signed on with competitor GG Racing. Terms of the deal call for Arena to raise at least £60 million in financing, while next week's rights issue is expected to raise between £70 million and £80 million. Arena's share price last closed at 95 pence.
Shareholder Meeting Scheduled for On-Point
A special meeting for shareholders of On-Point Technology Systems, Inc. (ONPT) has been scheduled for May 18, 2001. Shareholders are expected to consider and act upon the approval of an asset purchase agreement between On-Point and Interlott Technologies, Inc. One of the results of the deal would be a name change from On-Point to Global ePoint, Inc.
Stocks to Watch
Despite once again being included in a $1 billion lawsuit, Starnet Communications International (SNMM) stock performance hasn't been suffering. . . at least not anymore than that of other dot-coms. Starnet had been selling for around $0.65 before close on Friday. Prices have since taken a swift upswing, gaining nearly a third in value to sell at over $0.90 a share so far this week. The 52-week range for SNMM wavers widely, from $0.3125 to $3.9375.
Closed-loop racing and betting service provider Youbet.com (UBET) has been watching its stock prices closely lately, with a Nasdaq delistment looming in the company's near future. Unable to achieve and maintain a $1 stock price for 10 concurrent days makes the delistment of Youbet's stock a sure bet. The company's share price had been on the rise--somewhat--since its recent dip below $0.40 in April. On Friday, Youbet.com shares closed out at about $0.58.
Life is pretty good over at Scientific Games (SGM), the newest moniker for the former Autotote Corporation. Although share prices had been dipping below $2 in March and April, things have been on an upswing since then. Friday saw the company's stock sell for under $3.25, hitting a high note at $3.75 then finally closing out at $3.50 by closing time. Scientific Games' share prices have ranged from $1.86 to $5.125 during the past 52 weeks.
Reports Issued:
Magna Entertainment Inc. (MEIC) - First Quarter Results Ended March 31, 2001