Swedish Exchange Considers Ousting Porn, Gambling Companies
Whether companies that do business in adult entertainment, gambling, weapons, alcohol or tobacco can be traded on the Stockholm stock exchange is being debated in Sweden this week.
OM Group, the company that owns the stock exchange, is in the process of establishing new ethical guidelines about which companies should be allowed to trade on the exchange. The new rules will also govern what companies can trade on Jiway, OM's Internet stock exchange.
The new regulations may push Private Media Group, a Swedish adult entertainment company, into de-listment. If companies involved in gambling, weapons, alcohol or tobacco are also barred, it may be questionable whether certain government securities can be traded since the state is involved in many of those industries.
OGAM Investor Turns Convertible Debt Into Shares
The largest shareholder of Online Gaming Systems Ltd. (OGAM.OB) stock is turning part of its convertible debt in the gaming software company into common stock. It will also increase its funding of the Las Vegas-based business by up to $1 million.
As of Sept. 30, Hosken Consolidated Investment Ltd. (HCI) and its affiliates owned about $6.4 million in convertible notes for Online Gaming Systems. During the fourth quarter, HCI's affiliates loaned OGS $650,000. HCI intends to convert $3.6 million of its convertible notes into 60 million shares. On Sept. 30 the investment company had approximately 34 million shares, or about 55 percent of Online Gaming Systems. After the debt conversion, HCI will own nearly 79 million shares, or about 83 percent of the I-gaming company.
South Africa-based HCI also announced this week that it would extend the maturity date of its OGS shares from Dec. 31, 2001, to Dec. 31, 2003. Johnny Copelyn, CEO of HCI, said he thinks Online Gaming Systems will be financially successful next year.
"We are satisfied that OGS continues to make progress on the execution of its business plan and believe that the company can become profitable within the next year," he said.
The two companies also announced on Friday that Online Gaming Systems will launch the first Internet casino connected with the UnoDosTres.com Internet Television Network. OGS will manage and market the casino, and HCI will finance it. The site will be operated in Australia and will target the Latin American market.
Crypto Extends Stock Offer, Schedules Jan. 7 Conference Call
Canadian I-gaming software maker CryptoLogic Inc. (CRYP) is extending its Dutch auction offer for up to one million shares. The auction was to expire on Dec. 21, but the ending date has been rolled back to Jan. 11 at 11:59 p.m.
The company is holding a conference call on Jan. 7 at 8:30 a.m. EST to discuss fourth quarter business. Jean Noelting, president and CEO, said the group's buy-back initiatives of the past year have increased shareholder value.
"CryptoLogic's normal and substantial issuer bids this year have contributed to positive momentum in our share value, which remains 200 percent ahead of the start of 2001," he said. "We continue to view CryptoLogic as an attractive investment, given the company's solid fundamentals. The extension of the bid gives shareholders an opportunity to tender, makes good use of our strong cash reserves and can add positively to earnings per share."
MGM Releases Q4 Estimates
MGM Mirage (MGG) said this week that it expects fourth-quarter results to be on par with expectations as the casino operator recovers from the downturn in travel brought by the Sept. 11 tragedies.
Jim Murren, the company's president, said he is "comfortable" with the earnings estimate of 7 cents per share, which was compiled by Thomson Financial/First Call. Estimates from First Call analysts ranged from 2 cents to 17 cents per share.
"We're chugging along, keeping our head down," Murren said. "We promised Wall Street we'd be making money in the fourth quarter, and we'll make money in the fourth quarter."