he placements at the Casablanca casino located in Clark and Premier VIP slot club located in Manila represent the first agreements for electronic gaming machines placed on participation directly entered into by VendingData pursuant to the Stock Purchase and Product Participation Agreement between Elixir and VendingData entered into in June.
All of the electronic gaming machines are operational and contributing revenue to VendingData at this time. It will receive at least 20% of the electronic gaming machines’ net daily win per machine. VendingData has 100% of the electronic gaming machine floor in both venues.
Pursuant to the "earn-in" provision of the Stock Purchase and Product Participation Agreement between the companies, and subject to shareholder approval, 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.
Gordon Yuen, CEO of Elixir, commented, "Elixir is making excellent progress in securing contracts to place slot machines in Asian markets on participation on behalf of VendingData. The first agreements have been secured for VendingData in the Philippines which we believe will rapidly grow into a significant Asian gaming market. Elixir is now seeking to leverage its Pan-Asian distribution capabilities and partnership network to secure contracts in other Asian countries."
Mark Newburg, President & CEO of VendingData Corporation, added, "Our partnership with Elixir to address the gaming needs of the Asia-Pacific marketplace is expected to lead to significant opportunities for growth. We are pleased to be moving forward with them on the placements of electronic gaming machines on a high-margin recurring revenue business model."
In June, Elixir Group Limited and VendingData Corporation entered into a Stock Purchase and Product Participation Agreement pursuant to which VendingData will issue its common shares and warrants to Elixir, subject to certain closing conditions including the approval of VendingData common stock shareholders. It is also in the process of entering into a license agreement to change its name to Elixir Gaming Technologies, that will become effective on closing of the transaction.