Press Releases
Parlay Entertainment Inc. Announces Divestiture of Non-Core Assets
OAKVILLE, ONTARIO — May 22, 2008
Parlay Entertainment Inc. (TSX VENTURE:PEI) announced today the completion of a series of transactions which provide for the divestiture of its non-core assets.
Since approximately January of 2005, Parlay has increasingly invested in the development, marketing and licensing of software products and support services to the growing number of its customers who offer Internet gaming services in regulated jurisdictions such as the U.K. and Europe. Over this same period, the Internet gaming market has continued to evolve and mature, with the addition of new jurisdictions and enhanced regulatory structures. As a result, certain assets which include licensing arrangements with legacy customers who offer Internet gaming services into non-regulated jurisdictions have become non-core assets.
Effective on May 1, 2008 (the "Effective Date"), Parlay has divested itself of these assets and will no longer offer its software to gaming operators who do not operate within regulated jurisdictions. The divestiture includes the sale of certain software license agreements, as well as the sale of certain non-exclusive, limited and personal rights in some of Parlay's older software technologies together with a commitment that Parlay provide limited support arrangements during a transitional period.
The total consideration to Parlay from the divestiture is USD$2,810,000. Following the divestiture and as of the Effective Date, Parlay will no longer generate royalty revenue from these assets. Royalties earned up to the Effective Date will be payable under regular commercial terms.
"Parlay's management has been mindful of the uncertainty created by recent legislative changes and as a result, has reviewed both the composition of and the jurisdictions which are the focus of its existing customer base" said Scott White, Parlay's Chief Executive Officer. "The divestiture of these assets provides excellent value for Parlay's shareholders while at the same time allowing Parlay to focus all of its future efforts on the development, marketing, licensing and support of Internet gaming technologies into regulated jurisdictions".
About Parlay Entertainment
Parlay Entertainment Inc. is the world's leading developer and dominant licensor of Internet bingo solutions. As the inventor and patent holder of Internet bingo¹, Parlay was the first company in the world to develop and deploy a commercial Internet bingo product. Parlay Bingo is available in both 75-number and 90-number versions and is complemented by a full suite of lottery and casino games. Our multi-player, multi-platform technology is used to power more online bingo sites than any other software provider in the world. Some of the world's best-known brands use Parlay Bingo solutions, including Virgin, Yahoo!, Paddy Power, Bet24, Stan James, NetPlay TV, Bingos.com and the St. Minver bingo network. Parlay's head offices are in Oakville, Canada with offices in Bridgetown, Barbados and Valletta, Malta.
Contact:
Scott F. White
Parlay Entertainment Inc.
President & CEO
+1 (905) 337-6505
David Callander
Parlay Entertainment Inc.
CFO
+1 (905) 337-6516
For more information on Parlay solutions and services, please visit our Web site at www.parlaygroup.com.
This document may contain statements about expected future events and/or financial and operating results of Parlay Entertainment Inc. that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this release.
¹ United States Patent No. 6,585,590 "Method and system for operating a bingo game on the internet, with other Patent applications pending in other countries.
© 2010 by Parlay Entertainment Inc.