Casinovations Inc. Announces Placement of Shares and Conversion of Indebtedness.LAS VEGAS--(BUSINESS WIRE)--June 10, 1999-- Casinovations Inc., a manufacturer, distributor and developer of gaming products and concepts (the "company"), announced that it had entered into a subscription agreement with James E. Crabbe, a stockholder of the company, for the sale of 2 million shares of the company's common stock and a subscription agreement with Richard S Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a . Huson, a director and controlling stockholder of the company, for the conversion of $999,999 of outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. into shares of the company's common stock. Pursuant to the subscription agreement dated May 28, 1999 by and between the company and Crabbe, Crabbe will purchase 2 million shares of the company's common stock for $2.60 per share for an aggregate subscription amount of $5,200,000. Pursuant to the terms of the subscription agreement, Crabbe delivered $1,300,000 upon execution of the subscription agreement and agreed to pay the balance of $3,900,000, in no more than three equal installments of not less than $1,300,000, by July 10, 1999. Upon receipt of such payment or payments, the company will immediately cause the correct number of the shares (based upon $2.60 per share) to be issued to Crabbe. The company granted to Crabbe piggy-back registration rights as part of this transaction. After the complete funding of the subscription agreement and issuance of 2 million shares of common stock, Crabbe will become the second-largest stockholder of the company and is expected to file a Schedule 13D Schedule 13D An form that must be filed with the SEC under Rule 13D when a person or group acquiring more than 5% of any class of a company's shares to disclose this information within 10 days of the transaction. shortly. Pursuant to the subscription agreement dated May 28, 1999 by and between the company and Huson, Huson agreed to convert a certain portion of that certain Promissory Note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. dated December 31, 1998 in the original principal amount of $1,235,000 issued by the company in favor of Huson for shares of the company's common stock at a conversion rate of $2.60 per share. Pursuant to the terms of this subscription agreement, Huson will have converted $999,999 of outstanding indebtedness under the promissory promissory (prom´isôrē), n a promise; stipulation for a future act or course of conduct. into 384,615 shares of common stock and received a replacement promissory note. Steven J. Blad, president and chief executive officer of Casinovations, said, "The sale of shares of common stock to James Crabbe and the conversion of outstanding indebtedness owed to Richard Huson into shares of common stock will have positive impacts on the balance sheet of Casinovations. Through the infusion of Mr. Crabbe's subscription amount and the elimination of $999,999 from the company's liabilities, Casinovations will be in a position to continue its growth and meet its near-term working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. ." The company intends to use the proceeds from the issuance of the shares to Crabbe for the acceleration of the company's manufacturing capabilities to meet the increasing demand for its products, the international expansion of the company's intellectual property rights, the continued development of the company's SecureDrop Slot Accounting System, and general working capital purposes. Casinovations, a Nevada corporation A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada. Nevada, like the state of Delaware (See Delaware corporation), is well known as a corporate haven. , manufactures, distributes and develops various gaming products and concepts including the Random Ejection ejection /ejec·tion/ (e-jek´shun) 1. the act of casting out or the state of being cast out, as of excretions, secretions, or other bodily fluids. 2. something cast out. 3. Shuffler shuf·fle v. shuf·fled, shuf·fling, shuf·fles v.tr. 1. To slide (the feet) along the floor or ground while walking. 2. To move (something) from one place to another; transfer or shift. (TM), the SecureDrop(TM) Slot Accounting Systems, the SecureDrop(TM) Mobile Count System, and the "Fun Pit"(TM) Collection of table games. The company has headquarters at 6744 S. Spencer St., Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , NV, 89119. This news release contains statements that may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future prospects and liquidity requirements of the company. The forward-looking statements include those with respect to future working capital requirements, acceleration of manufacturing capabilities, expansion of intellectual property rights, continued development of the company's products and other statements regarding events or conditions which have not yet taken place. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. Those risks and uncertainties include, but are not limited to, risks relating to gaming regulations (including actions affecting licensing), leverage and debt service (including sensitivity to fluctuations in interest rates), domestic or global economic conditions and changes in federal or state tax laws or the administration of such laws. |
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