n September, shareholders approved the expansion of the company’s strategic alliance with Elixir Group Limited pursuant to which Elixir Group has become Elixir Gaming’s major shareholder according to the terms of the Securities Purchase and Product Participation Agreement between the two companies.
It also changed the company name to Elixir Gaming Technologies and trading symbol to "EGT", and appointed senior management and Board members with extensive industry and financial experience and relationships in the markets to be served by Elixir Gaming.
Since mid-August 2007, the firm has secured agreements with 20 venues in four Asian-Pacific markets for the placement of a total of approximately 4,000 electronic gaming machines on participation model.
Besides, it achieved 100% floor share for each slot venue and completed us$ 50 million private placement in October. It took steps to streamline capital structure and reduce fully diluted share count through exchange agreement with Elixir Group for certain vested and unvested warrants issued to Elixir Group.
The exchange agreement is subject to approval by Elixir Gaming’s shareholders at a meeting of shareholders to be held in late December 2007. In November, the company also retired all of its 8% senior secured promissory notes.
Gordon Yuen, Executive Chairman and CEO of Elixir Gaming, commented, "The company’s execution since mid-August against its strategy to secure long-term placements of electronic gaming machines on a participation model throughout the Asia-Pacific region has dramatically exceeded our initial expectations. Elixir Gaming now has agreements for nearly 4,000 units to be placed at twenty distinct venues in four markets versus our initial estimate of up to 3,000 devices by 2008 calendar year-end.”
”The meaningfully higher than anticipated ramp up in our backlog for participation devices is clear evidence of the growth potential that exists in addressing Pan-Asian gaming markets that are embracing quality gaming offerings and is a testament to Elixir Group’s strong market relationships and presence,” he added.
Joe Pisano, Senior Vice President and Executive Director further commented "It is clear that the markets we are addressing - Cambodia, the Philippines, Vietnam, cruise ships and other Asian markets - are markets for which tremendous demand exists for the introduction of gaming offerings that bring a high level of entertainment to players and drive high returns on investments for the venue operators. This demand is illustrated by the very low average number of gaming devices available per person in each of these countries when compared to other markets in the region such as Macau and Australia.
"Our model is to secure 100% of the slot floor at each venue where we secure agreements and to install the highest quality gaming devices currently available. In executing against this strategy, we expect to see strong player demand in the venues we address which in turn is expected to lead to rapid improvements in operating results as our business model is based on receiving at least 20% of the daily win per installed device. With 320 machines currently in operation at two venues, we anticipate ending 2007 with an installed base of approximately 1,500 units."