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SPORT OF KINGS REACHES AGREEMENT WITH LONDON IMAGE AMUSEMENT LIMITED

SPORT OF KINGS REACHES AGREEMENT WITH LONDON IMAGE AMUSEMENT LIMITED
 LAS VEGAS, Jan. 21 /PRNewswire/ -- Sport of Kings, Inc. (NASDAQ: ODDS) announced today that it has reached an agreement with London Image Amusement Limited which will provide the company with additional funds for its Sport of Kings race and sports book project to be located across from the Las Vegas Convention Center.
 London Image, which had previously agreed to provide the company with debt financing of $4,000,000 secured by a first mortgage of the company's Las Vegas property, has agreed to increase the amount of mortgage to $5,000,000. The additional amount will be loaned to the company in installments of $500,000 each on Jan. 31, 1992 and Feb. 10, 1992. London Image has agreed to reduce the interest rate under the mortgage to 10-1/4 percent from 11-1/2 percent and has further agreed to give up its right to convert the mortgage to shares of company common stock during the first year at $.35 per share. The amended mortgage agreement allows London Image to convert the mortgage to common stock at $.50 per share beginning Nov. 30, 1994 or upon notice of the company's intent to prepay the mortgage. The company may prepay the mortgage at any time subsequent to Dec. 31, 1992, provided that shares of the company's common stock are trading at a price in excess of 200 percent of the conversion price, as defined, for the thirty-day period immediately preceding the notice of prepayment.
 London Image has further agreed (i) to provide an additional $1,000,000 of financing, bearing interest at 15 percent, which amount will be loaned to the company upon the company obtaining a gaming license from the Nevada Gaming Commission, and (ii) to provide a irrevocable letter of credit in the amount of $1,000,000 with a commitment by the issuer thereof to increase the amount of the credit by an additional $1,000,000 at the company's request. Advances under the letter of credit are payable upon demand and bear interest at the rate of three percent over the prime rate. The company has agreed not to draw on the letter of credit except as may be necessary to satisfy the reserve requirements of the Nevada Gaming Authorities.
 The company has also announced the addition of three individuals to its senior management staff. William J. Vargas has been appointed chief financial officer of the company, and was formerly chief financial officer of Electronic Data Technologies, a publicly traded manufacturer and developer of marketing and management information systems for the gaming industry. In addition, Jack Lysaght has been appointed director of race and sports operations, and Michael Lavine has been appointed director of marketing. The company announced that both Lysaght and Lavine have substantial experience in the gaming industry.
 -0- 1/21/92
 /CONTACT: Dennis L. Amerine, president of Sport of Kings, 702-736-2736/
 (ODDS) CO: Sport of Kings, Inc.; London Image Amusement Limited ST: Nevada IN: SU:


SM-OS -- NY104 -- 1990 01/21/92 15:43 EST
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Publication:PR Newswire
Date:Jan 21, 1992
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