LVFH Executes LOI with Codere Group and Salinas TV Azteca Group
July 29 2014 - 6:30AM
Business Wire
Las Vegas From Home.com Entertainment
Inc. (the “Company” or “LVFH”) (TSX-V: LVH) (US
OTC Pink Sheets: LVFHF) (Berlin: LVH) (Frankfurt: LVH). LVFH is
pleased to announce that it has entered into and has executed a
letter of Intent (“LOI”) with the Mexican entity of the Codere
Group (“Codere”) and its Mexican partner the Salinas TV Azteca
Group (“Azteca”) in respect to a partnership for online gaming in
Mexico.
Codere is a leading Spanish Multinational
Gaming Company and a key player in the gaming sector in Europe and
Latin America with operations in gaming halls, gaming machines,
racetracks, and sports betting. Since its founding over thirty
three years ago, Codere holds a position of leadership in the core
business lines and geographic areas where it operates, being the
biggest bingo hall operator including casinos in Mexico, the
biggest gaming sector operator in the Province of Buenos Aires,
Argentina, and the top gaming operator in other growth markets such
as Italy, Panama, Columbia, Brazil and Uruguay. The securities of
Codere are listed for trading on the Madrid Stock Exchange under
the trading symbol “CDR”. For further information about Codere,
please visit www.Codere.com.
Azteca, previously known as TV Azteca, is a
Mexican multimedia conglomerate owned by Grupo Salinas. It is the
second largest mass media company in Mexico. The Grupo Salinas owns
businesses that participate in the television and the
telecommunication sectors, banking, and retail markets amongst
others. It has over 5,500 employees and has a strong presence in
Latin America and the U.S.A. For further information about Azteca
please visit www.Azteca.com.
Pursuant to the LOI, a new company shall be
incorporated in Mexico (“NEWCO”). The shareholders of NEWCO shall
be Codere as to 51% and LVFH as to 49%. NEWCO shall participate in
51.03% of the profits and losses of a Mexican partnership which was
established by means of an association agreement entered into on
September 28, 2012 between Codere and Azteca (the “Mexican
Partnership”). Effectively, LVFH’s ownership and share of profits
from the Mexican Partnership shall be 25%. In addition to receiving
its share of profits, LVFH shall also license its gaming platform
to the Mexican Partnership and will receive ongoing software
licensing royalties for its use thereof.
The Mexican Partnership has a federal gambling
license and is one of the few legal online gaming portals in
Mexico. The Mexican Partnership shall solely and exclusively use
LVFH’s Gaming Platform for its online gaming website
www.greenplay.mx and also for its sister gaming websites. It is
anticipated that www.greenplay.mx shall commence operations by
August 20, 2014. All decisions of NEWCO and the Mexican Partnership
shall be made jointly by the partners. LVFH shall also have the
right of first refusal to participate in any business opportunities
that may arise in any new territories in the Americas in which the
Mexican Partnership decides to get involved in. LVFH shall
contribute for its share the amount of US $4,000,000 in NEWCO for
the development and marketing of the Mexican Partnership’s online
gaming business.
The Mexican Partnership will benefit from
LVFH's latest HTML5-based games and its Gaming Platform, which
provide customers the ability to play games across all major
platforms and devices, including PC, Mac, iOS and Android devices.
Customers will enjoy selecting from a wide array of gaming content,
including bingo, sportsbook, poker, and a comprehensive suite of
high-quality casino games such as slots, blackjack and roulette.
Most importantly, the LVFH Gaming Platform is localized for the
Mexican marketplace, allowing customers to play with Mexican Pesos
and use local payment options.
LVFH’s President and CEO Mr. Jake H. Kalpakian
states: “We are thrilled at this development, as LVFH shall now be
associated with a leading Multinational Gaming Company such as
Codere and with a multimedia conglomerate such as Azteca. LVFH
shall benefit significantly from this enviable position of
participating legally in the huge Mexican iGaming Market and with
the opportunity of being able to get involved in other countries in
the Americas where online gaming is legal.” Mr. Kalpakian
continues, stating: “This partnership with the Salinas Group in
Mexico shall allow the Mexican Partnership to promote and market
its operations in Mexico via television and the use of the Salinas
Group’s diversified companies and networks. It is anticipated that
the revenues that shall be generated from this partnership shall
enable LVFH to become profitable.”
In order to make its contribution in NEWCO,
LVFH plans to utilize funds on hand, funds from the exercise of
outstanding warrants, and from the proceeds of a non-brokered
private placement financing of 5 million LVFH units at a price of
10 cents per LVFH unit, each unit consisting of one LVFH share and
one LVFH share purchase warrant exercisable at 10 cents per share
for a period of five years (the “Private Placement”). The Private
Placement shall be subject to the approval of the TSX Venture
Exchange.
The parties to the LOI have agreed to enter
into Definitive Agreements on or before September 15, 2014. The
Definitive Agreements shall include, but shall not be limited to,
anti-dilution provisions and other provisions which are customarily
used in transactions of this nature. The Definitive Agreements
shall be subject to the approvals of the TSX Venture Exchange, the
Codere Group and Azteca.
About LVFH
Since 1999, LVFH has been a reputable provider
of innovative gaming software spanning Poker, Casino, and other
popular multiplayer games. The Company’s successful and lengthy
track record in gaming software development, financial
accountability and cardroom operations has made LVFH one of the
leading software developers in the industry.
For more information on the Company:
Jake H. Kalpakian,President & CEO,
LVFH(604) 681-0204 ext. 6105jake@lvfh.com
Investor Relations:
Dave Burwell / Ariel Cobangbang,The Howard
Group1-888-221-0915dave@howardgroupinc.comariel@howardgroupinc.com
or
Robbie OrrTranscend Resource
Grouprborr@shaw.caOffice: (604) 681-0037Mobile: (604) 805-2126
Statements in this news release which are not
historical facts are “forward-looking statements” that involve
risks and uncertainties. Since forward-looking statements address
future events and conditions, by their very nature, they involve
inherent risks and uncertainties such as the risk that the closing
of the proposed transaction may not occur for any reason. The
reader is cautioned not to place undue reliance on forward-looking
statements.
Trading in the securities of the Company should
be considered speculative.
The TSX Venture Exchange has neither approved
nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Las Vegas From Home.com Entertainment Inc.Jake H. Kalpakian,
604-681-0204 ext. 6105President & CEOjake@lvfh.comorInvestor
Relations:The Howard GroupDave Burwell / Ariel
Cobangbang1-888-221-0915dave@howardgroupinc.comariel@howardgroupinc.comorTranscend
Resource GroupRobbie OrrOffice: 604-681-0037Mobile:
604-805-2126rborr@shaw.ca
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