he deal reflects continued execution against the plan to secure long-term placements of electronic gaming machines on a recurring revenue model in high-growth Asian gaming markets.
There are now agreements for long-term placements for a total of 1,264 electronic gaming machines to be placed on a participation basis at seven venues in three markets, including 200 units in Vietnam, 614 units in the Philippines and 450 units in Cambodia, pursuant to the Stock Purchase and Product Participation Agreement between Elixir and VendingData entered into in June. Elixir has achieved 100% slot floor share at each of the seven venues for which it now has agreements.
The Lao Cai International Casino is located on the banks of the Red River between Lao Cai, Vietnam and Hekou, China. The venue, which is open 24 hours a day and includes a four-star hotel, is located a short 10 minute walk from the border crossing with China and is in the heart of Lao Cai’s commercial and business district. The 200 gaming machines are expected to be installed in the next several weeks and will replace all of the currently installed gaming machines at the facility.
Vietnam is poised to be one of the fastest growing gaming markets in the Pan-Asian region based on a booming tourist industry, high economic growth rate and an increasingly progressive government which has been reviewing options to liberalize the casino gaming industry in the country in conjunction with efforts to promote further growth in tourism and foreign investment.
Gordon Yuen, CEO of Elixir, commented, "With this new agreement, Elixir continues to demonstrate that we can leverage our extensive relationships into new market share for high-margin, recurring revenue electronic gaming machine placements in rapidly expanding Asian gaming markets. As with the Lao Cai casino, our agreements to date to address the Philippines and Cambodia markets are for 100% of the floor share at venues that are in highly trafficked neighborhoods. As these and other gaming markets across the Pan-Asian region continue to open and/or expand, Elixir’s unique distribution capabilities, partnership network and experience will allow us to rapidly grow our participation installed base in Asia."
Mark Newburg, President & CEO of VendingData Corporation, added, "With agreements now for over 1,250 gaming machines, we continue to make rapid progress in our partnership with Elixir to address the gaming needs of the Asia-Pacific marketplace. This level of success places us solidly on the path to meet all of the goals we set out to achieve in our agreement with Elixir."
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.