eLOT, Inc. to Acquire Virtgame.com Corp. eLottery Subsidiary to Become Web-Based Retailer of Argentine Lottery Products.Business Editors
NORWALK, Conn.--(BUSINESS WIRE)--Feb. 25, 2000
eLOT, Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ELOT) today announced it has entered into an agreement to purchase San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. based Virtgame.com Corp. (OTCBB OTCBB
See OTC Bulletin Board (OTCBB). :VGTI VGTI Vaccine and Gene Therapy Institute (Beaverton, OR) ), a leading provider of Internet enabling technology to the lottery and gaming industries. This transaction further establishes eLOT as a leading player in the Internet lottery industry and provides entry into an important additional market through VGTI's agreement to be the web-based retailer of Internet lottery products for the State of Chaco in Argentina. In addition, VGTI brings the prospect of advanced border control technology as well as an experienced team of software developers.
Under terms of the agreement, VGTI shareholders will receive one share of eLOT common stock for every three shares of VGTI common stock held. There are approximately 10.5 million outstanding shares of VGTI, including 233,333 shares acquired by eLOT in 1996 which will be extinguished ex·tin·guish
tr.v. ex·tin·guished, ex·tin·guish·ing, ex·tin·guish·es
1. To put out (a fire, for example); quench.
2. To put an end to (hopes, for example); destroy. See Synonyms at abolish.
3. as a result of the transaction. It is anticipated that eLOT will issue approximately 3.4 million shares to complete the transaction. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts.
The phrase pro forma , for the transaction eLOT will have approximately 66.4 million shares outstanding. The agreement is subject to certain conditions, including the discontinuation dis·con·tin·u·a·tion
A cessation; a discontinuance.
Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent)
discontinuance of operations of VGTI's Constellation virtual casino, completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and VGTI shareholder approval.
VGTI is currently developing web-based instant lottery games for the Argentine lottery with sales expected to commence in the second quarter of this year. The Company has also established an Argentine Internet site for lottery games at www.juegosoficiales.com and the State of Chaco has agreed to secure licensing and distribution agreements with up to seven other Argentine state lotteries allowing Argentineans nationwide to access eLottery's web retail store from the site.
In addition to web-based lottery ticket sales, eLottery will also offer Argentine lotteries its IMARCS Internet marketing See Internet advertising. solution which leverages the power of the Internet by delivering one-to-one marketing messages that maximize ticket sales.
VGTI will also submit to the Nevada Gaming Control Board The Nevada Gaming Control Board, also known as the State Gaming Control Board, is a Nevada state governmental agency involved in the regulation of casinos throughout the state, along with the Nevada Gaming Commission. It was founded in 1955 by the Nevada Legislature. for approval a working prototype of a border control technology to be used by the Nevada gaming industry to offer Internet gaming access to Nevada residents only. The VGTI Nevada prototype offers state regulators and the licensed gaming industry a viable solution for intrastate distribution of licensed and controlled gaming products.
Commenting on the acquisition, eLottery President Mike Yacenda stated, "eLottery's domestic lottery focus and broad range of products and services will be complimented by VGTI's international marketing and sales capabilities. We believe that Argentina will be a powerful model that other South and Central American Central America
A region of southern North America extending from the southern border of Mexico to the northern border of Colombia. It separates the Caribbean Sea from the Pacific Ocean and is linked to South America by the Isthmus of Panama. governmental lotteries will want to emulate."
Joseph Paravia, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Virtgame.com stated, "eLottery has had a long standing interest in VGTI dating back to 1996 and has served as a catalyst that has successfully guided us to the web-based government lottery business model. We believe our Latin American experience American Experience (sometimes abbreviated AmEx) is a television program airing on the PBS network in the United States. The program airs documentaries about important or interesting events and people in American history, many of which have won impressive and contacts will be amplified by the eLOT purchase of VGTI and we're pleased to have this opportunity to become a part of the eLottery team."
eLottery has already contracted to be the Internet retailer of the Jamaica Lottery. eLottery has made progress on implementing the web-based sale of Jamaica Lottery tickets with installation commencing this month and ticket sales expected to begin during the second quarter. The Company has also established an Internet marketing and promotions system for the Idaho Lottery. About eLOT, Inc.
eLOT, Inc. is committed to leading the governmental lottery industry into the e-commerce market. The Company has developed, installed and operated systems that have processed ten million e-commerce lottery ticket sales and transactions. It has operated Internet, Intranet, telephone, communications, accounting, banking, database and other applications and services that can facilitate the electronic sale of new and existing lottery products worldwide. The Company has also developed transitional e-commerce solutions for governmental lotteries, which leverage the power of the Internet, while political, legal and social issues are simultaneously addressed. eLottery's corporate web site is on the World Wide Web at http://www.eLottery.com.
About eLotteryFreeWay.com (http://www.elotteryfreeway.com)
A reward-entertainment lottery portal, eLotteryFreeWay offers lottery and entertainment games (for no consideration) with registered players earning ePoints that are redeemable for cash and merchandise. eLotteryFreeWay's mission is to build an Internet community whose members are expected to be highly predisposed pre·dis·pose
v. pre·dis·posed, pre·dis·pos·ing, pre·dis·pos·es
a. To make (someone) inclined to something in advance: to purchase governmental lottery tickets over the Internet.
This news release contains forward-looking statements. Such statements are subject to certain factors, which may cause eLOT's plans to differ or results to vary from those expected including the risks associated with the development of new products and the uncertainty of product acceptance, the competitive nature of the Company's industry, rapid technological change, legal uncertainties, the Company's dependence on key personnel, and a variety of risks set forth from time to time in Company filing with the Securities and Exchange Commission.