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VEGAS CHIPS ANNOUNCES FILING OF FORM 8-K WITH SEC AND NASDAQ

 VEGAS CHIPS ANNOUNCES FILING OF FORM 8-K WITH SEC AND NASDAQ
 NORTH LAS VEGAS, Nev., Aug. 20 /PRNewswire/ -- Vegas Chips, Inc., a Delaware Corporation, ("the company") announced today its filing of Form 8-K with the SEC and the NASDAQ Hearings Department with a pro-forma balance sheet evidencing compliance with all requirements necessary for continued listing on the NASDAQ Small-Cap Market.
 On Aug. 13, 1992, prior to the company completing a 1 for 15 stock split described below, the company completed a Private Placement Securities Offering in which it sold 7,400,000 shares of restricted common stock to seven investors at $.0625 per share which raised $462,500 in cash. The single largest investor, Roger Nix, purchased 4,800,000 of the 7,400,000 shares, giving him 25.7 percent ownership of the company. The company also issued Nix an option to purchase up to 7 million shares of restricted common stock of the company at a price of $.0625 per share for the first period of 18 months, $.075 per share for the next 12 months, and $.09 per share for a final 12 months, for an aggregate option period of 42 months. In consideration for this option Nix agreed to cure any future deficiencies in the company's asset requirements, based on current NASDAQ requirements, for maintaining its listing on NASDAQ for a period of 42 months.
 On Aug. 14, 1992, the company completed a 1 for 15 reverse stock split for the purpose of meeting the bid price requirement of its NASDAQ maintenance standards. The reverse stock split was approved by a majority of the shareholders to which nine of the largest shareholders who hold a majority of the outstanding common stock signed a written consent in lieu of a special meeting of the shareholders. After the reverse stock split, the company has 2,500,000 shares of common stock authorized and approximately 1,245,500 shares of common stock issued and outstanding. Effective Aug. 18, 1992, NASDAQ issued the company a new symbol because of the reverse split of VCHCV.
 On Aug. 18, 1992, the company purchased the facilities that it currently occupies at 2945 N. Martin Luther King Blvd. for a purchase price of $650,000, payable $150,000 down and $500,000 promissory note bearing interest at 3 percent above prime rate of Bank of America. The company intends to continue to utilize the newly acquired facilities for manufacturing, warehouse and office space. The property consists of approximately 3.7 acres of land which the current facility occupies less than half the property. The additional vacant land should allow the company to expand its current manufacturing and warehouse space should the need arise.
 The company's management is very optimistic that the private placement proceeds will allow the company to take advantage of many new opportunities including expansion of company's distribution territories, new Vegas Chips snack products, strong advertising and marketing programs, and the expansion of the distribution in Las Vegas for other national manufacturers. This should enable the company to continue momentum already achieved in the prior quarters of increase sales and decrease losses.
 -0- 8/20/92
 /CONTACT: Paul S. Adams, chief financial officer, or Richard Falk, vice president, both of Vegas Chips, Inc., 702-647-3800/
 (VCHCV) CO: Vegas Chips, Inc. ST: Nevada IN: SU:


JB-SS -- FL004 -- 1723 08/20/92 12:52 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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