VendingData Corp (AMEX:VNX) announced today that Elixir Group Limited (“Elixir”) has delivered agreements for a total of 450 electronic gaming machines on a recurring revenue model at three venues in Cambodia. The agreements to place electronic gaming machines at the Lucky Diamond Casino located in Siem Reap and at the Tin Tin Slot Club and the Comfort Slot Club located in Phnom Penh, represent the second market in Asia for which Elixir Group has delivered agreements following the announcement last week of agreements for electronic gaming machines placed in the Philippines. There are now agreements for a total of 824 electronic gaming machines to be placed on participation pursuant to the Stock Purchase and Product Participation Agreement between Elixir and VendingData entered into in June.
The 450 electronic gaming machines for the Cambodian market are expected to be installed in the next couple of weeks and will contribute to VendingData’s revenue at that time. These units represent 100% of the electronic gaming machine floor in each venue and VendingData will receive at least 20% of the net daily win per machine. Pursuant to the “earn-in” provision of the Stock Purchase and Product Participation Agreement between the companies, and subject to shareholder approval and closing, VendingData will issue 25 million shares of its common stock to Elixir at the time the first 1,000 slot machines are placed in the Asia-Pacific market. (please see additional information below)
Gordon Yuen, CEO of Elixir, commented, “These agreements to deliver 450 slot machines in Cambodia mark our entrance into a second Asian market and provide further evidence of the progress we are making against our goal to leverage our partnerships and distribution capabilities to address gaming needs throughout Asia. Both the Cambodia and Philippines markets are emerging as growth venues for gaming and based on our initial success in securing placements we believe we are well-positioned to capitalise on the further growth in these markets as it occurs.”
Mark Newburg, President & CEO of VendingData Corporation, added, “We are very pleased with the progress we are making towards meeting the goals set forth in our partnership with Elixir to place high-margin recurring revenue electronic gaming machines throughout Asia and we look forward to reporting on further progress on our partnership in the near future.”
28 August 2007