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
www.360entertainmentandproductions.com
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contains forward-looking statements that involve a number of risks
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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.