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North America: EuroAustralia: |
Chartwell Releases Second Quarter Results
Online gambling software developer Chartwell Technology Inc. last week announced its results for the three and six-month periods ended April 30, 2001. Revenues for the six-month period were $1,044,355, an increase of 125 percent over the corresponding period of the previous year. Second quarter revenues of
$601,817 were a 36 percent increase over the preceding quarter. The majority of revenues were generated by the company's Chartwell Games Corp. subsidiary through software licensing and development fees. Second quarter expenses were $867,348, representing a decrease of 17 percent from the preceding quarter.
The majority of the expenses related to research and development.
Chartwell posted a loss of $862,000 for the period compared to a loss of $1,034,912 in the corresponding period of the prior year. The quarterly loss of $265,531 was a 45 percent reduction of the loss in the preceding quarter. As in previous quarters, a significant portion of the loss for the period represents an investment in software development. Expenses related to software development are not capitalized. Working capital at the end of the period was $7,218,986.
eBet to Distribute 46 Million Shares
eBet Ltd announced last week that it's preparing to distribute more than 46 million shares. "The company's tax advisors have indicated that the distribution of shares is treated as a disposal for tax purposes," the company said. The company also said that any disposal in excess of the indexed tax base of $9.1 million for the shares could result in a capital gains tax liability. The company intends to have the distribution approved by late August and completed during September.
CasinoBuilders.com Takes over Information Technology Firm
CasinoBuilders.com, Inc. and Computer Support Associates, Inc. have entered into a letter of intent calling for CasinoBuilders to exchange newly issued shares of restricted CasinoBuilders voting stock with a value of $3.5 million for all the issued and outstanding shares of Computer Associates. The acquisition is subject to completion of a definitive stock exchange agreement and approval by both boards of directors. Computer Support Associates, Inc., a nationwide information technology consulting firm based in New Orleans, provides a complete range of IT solutions, including consulting, networking, broadband and Internet services, cabling, deployment, help desk and telephony services.
MGAM to Redeem Warrants
Gaming technology group Multimedia Games Inc. (MGAM) announced that it will redeem all of its publicly traded Class A warrants and Class B warrants that remain unexercised and outstanding at the close of business on Aug. 10, 2001. The warrants will be redeemed by MGAM at $0.10 per warrant unless the warrants have been exercised before 5 p.m. (EDT) Aug. 10. There are approximately 1,168,833 Class A and 523,310 Class B warrants outstanding. Each warrant entitles the holder to purchase one share of MGAM common stock at $8 per share. A formal notice of redemption was sent to all warrant holders of record on June 27.
Next Generation Defies Backlash Down Under by Raising More Money
Sydney Morning Herald reports that two investors in Australian online casino software developer Next Generation Gaming--Allen & Buckeridge and Hollywood fund Entertainment Media Venturesm--have just pumped a combined $3 million into the company. Money recently raised by Next Generation will go into the company's expansion into new international markets.
The Way of the RivTrend
The RivTrend Global I-Gaming Stock IndexTM rose last week to its highest closing point since June 11, thanks mostly to a 9.6 percent jump by the North America sub-index. The North American index reached its highest closing point Friday since peaking at 148.9 June 5 (one day after Nevada's Senate passed a bill legalizing Internet gambling).
Pulling most of the weight was Scientific Games (SCG) with its closing price rising to 5.89 on Friday from 4.57 the previous Friday (a 29 percent boost). The company's share value was sparked by the announcement that its TrackplayTM partnership with Arena Leisure has reached an agreement with the British Horseracing Board. The deal enables the Go Racing Consortium (a partnership between Arena, British Sky Broadcasting and Channel 4) to access the pre-race data necessary to launch the Go Racing interactive horseracing website this autumn and an interactive racing television channel in the spring of 2002. The company's biggest day was Friday with an $0.83 gain on the day and a volume of 615,000.
|
June 22 |
June 29 |
% Change |
| North America Index |
129.46 |
141.9 |
+9.6% |
| EuroAustralasia Index |
110.99 |
111.42 |
+0.4% |
| Global Index |
112.59 |
114.05 |
+1.3% |
Penn National Floating $300 Million
Penn National Gaming Inc. is hoping to raise capital by offering nearly $300 million in mixed securities. The company plans to sell shares of its debt securities, preferred stock and common stock over the course of one or more offerings. Profit generated from the sale of additional shares will be earmarked for general corporate purposes, including capital expenditures, working capital, debt repayment, acquisitions and common stock repurchases. Penn National was trading at $26.20 at midday trading today.
Gaming Internet Makes Major Announcements
British Internet gambling company Gaming Internet is hoping to raise £8 million by placing an open offer of 16p a share, which will represent around 21 percent of the company's share capital after the share issue. The share offer was part of an announcement that also included news the company was releasing a senior director and changing its name.
The 16p share price is much lower than the peak of 79p reached last year. The company also raised capital last year by floating shares at 25p a share.
Richard Kay, who owns over 30 percent of the company, has resigned as director.
Gaming Internet also revealed that it had lost £27.5 million during the 18 months to December. Its turnover was £3.6 million.
The complex announcement involves repayment and restructuring of borrowings. It appears that, subject to conditions, various companies have agreed to take the shares in the placing.
Finally, the company's new name will be "Gaming Insight."
HCI Affiliates Converts Online Gaming Systems Stock
Affiliates of Hosken Consolidated Investment Limited (HCI) have converted the shares of Online Gaming Systems, Ltd. they owned from preferred stock to common stock. The move is noteworthy since HCI and its affiliates are the largest shareholders of OGS. The preferred stock converted to 18,610,422 of common stock, which was issued to affiliates of HCI. The company now has 33,779,602 shares outstanding, and HCI and its affiliates own 21,799,857 shares, or about 65 percent of the outstanding stock of the company. In addition to its direct ownership stake in OGS, HCI has funded the company via about $4.2 million in the form of convertible notes, as of March 31, 2001. HCI is a South Africa-based investment holding company that focuses its activities in telecommunications and information technology, media and broadcasting, interactive gaming and entertainment and financial services.