Starnet Receives Approval for Reorganization and Move
Gaming software developer Starnet Communications International Inc. (SNMM) reported last week that, upon a third attempt, it has obtained a majority vote of outstanding shares in favor of its proposal to reorganize into a U.K.-based parent company. Results of the vote were announced at a special meeting of shareholders held Friday at the company's offices in St. John's, Antigua. The company says that the approval is a key step in the reorganization process by which the company intends to reorganize into a U.K.-based parent company, World Gaming Plc.
Interim President and CEO Fred Hazell says the United Kingdom is friendly territory for Internet gaming companies. "We believe that the United Kingdom is more supportive of companies operating in the online gaming industry and will provide a more favorable business and financial environment for the long-term profitability and growth of our business," he said. "We are indeed very excited about the opportunities that are now before us."
The company previously sought approval unsuccessfully Dec. 8 and again Dec. 21.
Stanley Leisure Gets a Boost from Merrill Lynch
Merrill Lynch says the outlook for U.K. land-based and virtual casino operator Stanley Leisure (SLY.L) is favorable, despite the group's late arrival on the Internet gambling scene, according to Yahoo.com.
Investors responded today by boosting shares of the company by 5.50p (a 2.97 percent increase). Merrill also pointed to the potential benefits of the government-sponsored gambling and gaming review, due this summer; the prospect of betting duty being replaced with a tax on bookmakers gross profits; and an improved trading environment in 2001.
Operating Revenues for eBet on the Rise
eBet Ltd. (EBT.AX) on Thursday reported consolidated operating revenue of $2.5 million for the six months ending Dec. 31, 2000--around $300,000 more than the result for the entire 1999/2000 fiscal year and a 307 percent increase on the previous six-month period. Managing Director Keith Cullen says the company expects the upward trend in sales to continue through the opening of new markets and its acquisition strategy. He added, however, that the company, which reported $10.78 million in net losses, will still be in the red for 2001.
Betandwin.com Exceeds Q4 2000 Forecasts
betandwin.com (BWIN) reports that its betting turnover rose to over EUR 7.5 million in the fourth quarter of 2000 compared to EUR 1.5 million in the same period the previous year, an increase of over 400 percent. Net winnings were up by 360 percent to over EUR 900,000 (a margin over 12 percent) compared to EUR 194,000 previous year (a margin of 13 percent). The company attributes the 12 percent margin to its "communicated strategy of rapidly gaining market share by its offering customers attractive odds." At the same time, the number of registrations rose to more than 117,000, including 108,000 new registrations in 2000. Further, the company reported to have liquid assets in excess of EUR 46 million, giving it "sufficient capital for future expansion."
1st Genx.com Secures $500,000 in Financing
1st Genx.com, Inc. (FGNX), a gaming software provider, reported Tuesday that it has secured $500,000 in long-term financing via a guaranteed collateral backed letter of credit. Any or all of the $500,000 may be drawn down at the discretion of the company, within the calendar year of 2001. Monies advanced to the company will be charged at prime plus 2 percent and due and payable within five years of receipt thereof. Further at the option of the lender the loan, in its entirety may be retired by the issuance of treasury shares of the company. The lender is H.E. Capital S.A., a financial services institution based in the Dominican Republic.
1st Genx.com has drawn down $150,000 for the purpose of the immediate implementation of its marketing plan to secure licensees of its Internet gaming software, Stealth 001. The company reports that it has received in excess of 250 inquires of recent ranging from $10,000 to $800,000.
The company, to achieve its goals, has:
retained a Web/graphic designer to develop and produce a new corporate image on its home page and website;
retained a business consultant to prepare a revised business plan, executive summary and two-page fact sheet;
identified trade shows that the company will be demonstrating its Stealth 001 software (the first of which will be the World International Gaming Conference held on March 15-16 in Miami); and
begun establishing a sales department with the exclusive responsibility of introducing the Stealth 001 software to in-house leads and target marketing current online gaming sites.