Mar 28, 2001
Bingo.com Announces Financing Plan with Bounce Back Technologies.com, INC. and Termination of Merger Talks with Lottery Channel
Transaction Offers Stability and the Ability to Pursue Core Business Strategy
MARINA DEL REY, Calif., March 28 /PRNewswire/ — Bingo.com, Inc. (OTC Bulletin Board: BIGR) announced that they have entered into a letter of intent proposing a financing arrangement between the company and BounceBack Technologies (OTC Bulletin Board: BBTC) a Minnesota Corporation headquartered in Ocean Springs, Mississippi. BIGR also announces that the merger talks with The Lottery Channel, Inc. have terminated.
The proposed financing will see Bingo.com, Inc. issue a convertible debenture to Bounce Back Technologies.Com, Inc. in the amount of $1,250,000.00 due 3 years from the closing date with 12% interest payable annually. Additional terms of the debenture will include the right by BBTC to convert in to common shares of BIGR at the fixed price of $0.125 per share, BIGR will issue warrants giving BBTC the right to purchase an additional $3,000,000 worth of BIGR shares at a fixed price of $0.25 per share. At Closing BBTC will be given the right to name 4 members of an expanded 5 member BIGR Board, John J. Pilger the Chairman and CEO of BBTC will be named Chairman of BIGR, and Joseph M. Valandra, the new President and COO of BBTC will be named CEO of BIGR. Shane Murphy the current Chairman and CEO of BIGR will be named President and COO of BIGR.
Shane Murphy, CEO of Bingo.com, said, “We believe the financing gives us the stability we need to execute our business plan. The addition of experienced management and their belief in our business plan will allow the company to focus and grow our revenue base.”
“Our revenue streams will continue to include advertising, data base management, software licensing and the Company’s soon to be released pay to play initiatives. We expect all of our revenue streams to show meaningful growth over the coming year. This financing allows us to broaden our scope by introducing new games and other entertainment offerings. We believe this is an ideal strategic move to leverage and expand our business model as the stickiest site on the Web.”