VGTel, Inc. dba 360 Entertainment & Productions Signs Letter of Intent to Acquire Ohio-based Electronic Raffle Kiosk Company
Poster: SySAdmin
Posted on October 25, 2012 at 7:42:01 AM
VGTel, Inc. dba 360 Entertainment & Productions Signs Letter of Intent to Acquire Ohio-based Electronic Raffle Kiosk Company
NEW YORK, Oct. 25, 2012 /PRNewswire/ -- VGTel, Inc. dba 360 Entertainment & Productions, Inc. (OTCQB: VGTL), CEO Peter Shafran is pleased to announce the Company has signed a letter of intent (LOI) with an Ohio-based company in the charitable video gaming industry. "The target company is exactly the type of company we've been searching for and the right kind of people who share our vision in this market," says Shafran. Shafran added, "This deal makes sense for both parties - it provides 360 with a proven model and a talented staff of gaming industry veterans and will provide the target company with even more opportunities and higher levels of support and product development." Counsel is preparing the definitive closing documents and the parties expect the transaction to close on or before November 15, 2012.
The Ohio-based target company has complete manufacturing capabilities, software licensing for raffle games, distribution and maintenance components in place with staffing and warehousing in Ohio. It also currently enjoys a five-year contract to place charitable video raffle kiosks in participating veterans and fraternal organizations' locations in Ohio, which will enable the expansion of raffle units and locations to meet and exceed more than 5,000 units in 1500+ locations. Proceeds from these video raffles will benefit the locations and the charities they support.
"Following this acquisition," Shafran explained, "360 intends to expand similar operations throughout Ohio and into other states where the regulatory and political environments are accommodating. We have already started exploring that process in earnest in several other states."
Under the terms of the LOI, the Company will acquire 100% of the target company, with management, operations and contracts in place. The target company will then operate as a wholly owned subsidiary of 360, in compliance with all governmental regulations. The acquisition of the target company is valued at greater than $25 million in cash and stock. The projected revenue to 360 in the first full 12 months after acquisition is in the range of $25,000,000 - $35,000,000, with expected EBITDA greater than $5,000,000 - $7,500,000, based on current revenue in the field. The projected revenues in years 2 through 5 (from Ohio-based operations alone) would appear to be in the range of $50,000,000 - $75,000,000, or better.
About 360 Entertainment & Productions
360 Entertainment & Productions is devoted to creating a multi-platform media company offering products in the electronic raffles and sweepstakes gaming industries. In addition, 360 Entertainment & Productions is seeking other opportunities in the rapidly growing electronic gaming industry in those venues and states where allowed by regulation. Our business outlook is based on a strategy of growing and building business units through investments and acquisitions.
For further information http://www.360entertainmentandproductions.com
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.
Forward Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement. Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in the Company's filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
CONTACT:
Investor Contact:
Peter Shafran, CEO
VGTel, Inc. dba 360 Entertainment & Productions
Phone: (360) 8-360-ENT
petershafran@360entertainmentandproductions.com
SOURCE VGTel, Inc. dba 360 Entertainment & Productions, Inc.
VGTel, Inc. dba 360 Entertainment & Productions, Inc.
Web Site: http://www.360entertainmentandproductions.com
NEW YORK, Oct. 25, 2012 /PRNewswire/ -- VGTel, Inc. dba 360 Entertainment & Productions, Inc. (OTCQB: VGTL), CEO Peter Shafran is pleased to announce the Company has signed a letter of intent (LOI) with an Ohio-based company in the charitable video gaming industry. "The target company is exactly the type of company we've been searching for and the right kind of people who share our vision in this market," says Shafran. Shafran added, "This deal makes sense for both parties - it provides 360 with a proven model and a talented staff of gaming industry veterans and will provide the target company with even more opportunities and higher levels of support and product development." Counsel is preparing the definitive closing documents and the parties expect the transaction to close on or before November 15, 2012.
The Ohio-based target company has complete manufacturing capabilities, software licensing for raffle games, distribution and maintenance components in place with staffing and warehousing in Ohio. It also currently enjoys a five-year contract to place charitable video raffle kiosks in participating veterans and fraternal organizations' locations in Ohio, which will enable the expansion of raffle units and locations to meet and exceed more than 5,000 units in 1500+ locations. Proceeds from these video raffles will benefit the locations and the charities they support.
"Following this acquisition," Shafran explained, "360 intends to expand similar operations throughout Ohio and into other states where the regulatory and political environments are accommodating. We have already started exploring that process in earnest in several other states."
Under the terms of the LOI, the Company will acquire 100% of the target company, with management, operations and contracts in place. The target company will then operate as a wholly owned subsidiary of 360, in compliance with all governmental regulations. The acquisition of the target company is valued at greater than $25 million in cash and stock. The projected revenue to 360 in the first full 12 months after acquisition is in the range of $25,000,000 - $35,000,000, with expected EBITDA greater than $5,000,000 - $7,500,000, based on current revenue in the field. The projected revenues in years 2 through 5 (from Ohio-based operations alone) would appear to be in the range of $50,000,000 - $75,000,000, or better.
About 360 Entertainment & Productions
360 Entertainment & Productions is devoted to creating a multi-platform media company offering products in the electronic raffles and sweepstakes gaming industries. In addition, 360 Entertainment & Productions is seeking other opportunities in the rapidly growing electronic gaming industry in those venues and states where allowed by regulation. Our business outlook is based on a strategy of growing and building business units through investments and acquisitions.
For further information http://www.360entertainmentandproductions.com
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.
Forward Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement. Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in the Company's filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
CONTACT:
Investor Contact:
Peter Shafran, CEO
VGTel, Inc. dba 360 Entertainment & Productions
Phone: (360) 8-360-ENT
petershafran@360entertainmentandproductions.com
SOURCE VGTel, Inc. dba 360 Entertainment & Productions, Inc.
VGTel, Inc. dba 360 Entertainment & Productions, Inc.
Web Site: http://www.360entertainmentandproductions.com