A New Float in the Works
Australian Online Casino, which reportedly has an online gambling license from both Norfolk Island and Vanuatu, is looking to cash in with a $10 million ASX IPO, according to the Australian Financial Review. As part of the stock flotation plan, AOC will offer half of the company at 20 cents per share, with subscribers also receiving a free stock option for every share purchased. This will leave AOC with 80 million shares on issue, valuing the company around $16 million. Oddly enough, AOC's site isn't up yet. A February launch date is targeted, with plans to offer video poker and video keno.
Rhode Island Third in U.S. for VC Dollars
Tiny Rhode Island is third in the U.S. for garnering the most percentage of venture capital funds, a Newstream article relates. In the past 12 months, companies in the tiny state have attracted nearly $140 million in VC funds, $62 million more than companies attracted during the previous five years combined. Part of the success story is attributed to the state's tax-friendly initiatives, including one of the highest research and development tax credits in the nation, set at 22.5 percent. Plus, the state gives job creation tax breaks and a software industry stock tax exemption that grants an exclusion to qualifying employees for stock sale gains.
VGAM Stock Reduction Plan Announced
Officials at Virtual Gaming Enterprises, Inc. (VGAM) have placed a stop on 5 million shares of issued and outstanding stock. The move has been taken so that the shares will be canceled and returned to the companies' treasury, thus eliminating over 60 percent of the company's issued and outstanding common equity as reported on form 10Q on October 25, 2000. "We are pleased to first announce the stop being placed, and second, that upon completion of this cancellation, that our issued and outstanding common stocks weighted average will be reduced from 8,287,701 at October 25, 2000 to the equivalent of 3,287,701 or 61 percent," explained Virtual Gaming's president Virgil G. Williams. "Finally, Virtual Gaming's market cap will be reduced by approximately $7.5 million dollars without any further
decrease in our company's share price.'
Starnet Files Proxy
Starnet Communications International (SNMM) has filed a definitive proxy statement with the Securities and Exchange Commission (SEC) seeking shareholder approval for the company's planned reorganization to become a wholly-owned subsidiary of World Gaming Plc. World Gaming is a
newly formed company incorporated in England and Wales. A shareholders meeting to vote on the reorganization proposal is set for December 8, 2000 at the Royal Antiguan Hotel in St. Johns, Antigua. "The reorganization will add shareholder value over time as it will enable our company to gain
business advantages that are not currently available under our present corporate structure," added Fred Hazell, Starnet's chairman and interim president and CEO.
The Tale (or is it 'Tail') of the Media Rights Bid
A number of companies are frantically bidding for the U.K. horseracing media rights. According to a Reuters article, NTL Inc., one of Britain's largest cable television groups, is interested in joining in Arena Leisure's (ARE.L) Go Racing joint venture. Arena, British Sky Broadcasting (BSY.L) and Channel Four Television equally own the joint venture. Battling the group for the media rights, including TV, Internet and interactive rights to the horseracing, is Cartlon Communications (CCM.L). Should Go Racing win the media rights decision, NTL plans on carrying the Go Racing channel on its interactive cable networks. Arena, meanwhile, is in a joint venture with Autotote Corporation (TTE) to handle the gambling services for Go Racing. In addition, BSkyB will offer its interactive pay-TV to the offering while Channel Four will bring experience in racing coverage. The Racecourse Association is expected to announce the winning bid for the media rights on November 21.
Financial Reports
Global Technologies, Ltd. (GTLL) has released it its report for quarter ending September 30, 2000, which shows:
Revenues for the quarter ended September 30, 2000 were $169,321 (unaudited), compared with $5.6 million (unaudited) for the comparable quarter ended September 30, 1999. Net loss for the quarter was $(11.0) million (unaudited), or $(1.05) per share (unaudited), compared with a net loss of $559,115 (unaudited), or $(0.06) per share (unaudited), for the corresponding prior year period. For the quarters ended September 30, 2000 and 1999 there were 10,523,487 (unaudited) and 8,751,993 (unaudited)
weighted average basic and diluted shares outstanding, respectively.
The company also reported that the fiscal 2001 first-quarter net loss includes non-cash charges of $3.8 million, or $0.36 per share, consisting of 1) $1.9 million of special charges related to a termination agreement with International Lottery & Totalizator Systems, Inc. (ITSI.OB)
regarding its facilities management agreement, 2) $1.7 million of non-cash interest charges related to warrants issued in connection with certain financings, and 3) $0.2 million of non-cash compensation expenses related to warrants issued in connection with financial advisory agreements. Offsetting
these charges was a $1.0 million extraordinary gain, or $0.09 per share, associated with the company's redemption of $2.0 million of secured convertible notes. Exclusive of these non-cash items, net loss for the first quarter ended September 30, 2000 was $(8.2) million, or $(0.78) per share.
Total Entertainment, Inc. (TTLN) has also released its third quarter report, which shows a 238 percent increase in revenue for the quarter. The company recorded $ 200,210 in net revenue in the third quarter 2000, compared to $59,196 in the third-quarter 1999. In addition, Total Entertainment recorded a 40 percent increase in member deposits for the nine months ended September 30, 2000, a significant increase over the same period ended September 30, 1999. The company also recorded net revenue of $565,755 for the nine months ended September 30, 2000; a 35 percent increase over revenue of $371,097 for the nine months ended September 30, 1999. The net loss for the first nine months of 2000 was ($10,537) or ($0.00) per basic and diluted share respectively, compared to a loss of ($718,795) or ($0.01) per basic and diluted share, for the same period in 1999.
"We are very pleased with the financial results for the third quarter. This is the third consecutive quarter that we have achieved in excess of 200 percent revenue growth.' said Sandy J Masselli, Jr, chairman and CEO. "We continue to grow our global business and maintain our leadership position, while balancing the need to develop proprietary software, increase staff and leverage resources throughout the organization. Our goal is to translate revenue growth into profitability as quickly as possible while increasing market share.'
Go Call Inc. (GOCA) has filed a late-second quarter report. According to President and CEO James Palmer, the lateness was because of "changing accounting firms and changing to a more simplified way to represent our data." He continued, "I expect the new firm's approach to be able to help carry us through to full reporting on the NASDAQ much faster than would have been possible previously. Additionally, our internal accounting team has put in place procedures to ensure we are on time starting with the annual report. The third quarter will be filed within the SEC filing rules limit. The income results for the second and third quarters were projected to be, and are, depressed because of the mandatory restructuring activity that was required. The planning and restructuring was completed and is enabling a full scale re-launching of the business. The company has started to implement new and old sports books, bingo, lottery, and new casino sites. This phase will be completed by the end of the year. Because of the changes in the structure of the company and the technology installed we are now completely scalable which will allow us to take on a virtually unlimited number of licensees. The number of sites being implemented, and the advertising taking place in the fourth quarter will allow us to show a favorable trend in the first quarter of 2001."