Starnet executives can give a big sigh of relief now that they've finally signed a deal selling their adult entertainment division. The buyer, TITBCD Incorporated, a Bahamian company, is paying Starnet $3.6 million over a four-and-one-half year period for the division.
With the, Starnet can focus on its core online gaming, pari-mutuel, sports and web-based interactive services business.
"This previously announced transaction is an important strategic step that marks an exciting turning point in our business model as we transition into a new stage of growth, and clearly signals to our shareholders our commitment to deliver increased shareholder value," Starnet CEO and
President Meldon Ellis said.
Ellis added, "Sale of this division enables Starnet to enhance its long-term competitive position, corporate brand and shareholder value, as funds from the sale will be used to further develop our pari-mutuel, sports and video streaming capabilities."
"The sale of this division, together with our rapidly improving operating performance as evidenced by our most recent second quarter results, and the recent engagement of Ladenburg Thalmann for investment
banking services, puts Starnet in a very strong financial position. We are now extremely well positioned to execute our strategic growth plan and increase our franchise value and will move aggressively," Ellis concluded.