DEQ and DEK International reach a settlement on the Severn Project
07 Marzo 2011 - 11:00PM
PR Newswire (Canada)
LEVIS, QC, March 7 /CNW/ -- LEVIS, QC, March 7 /CNW Telbec/ - DEQ
Systems Corp. (TSX-V: DEQ) ("DEQ" or the "Company"), a leading
provider of table game bonusing, jackpot and loyalty solutions,
announced today that it has entered into an agreement with DEK
International, an arm's length party, for the transfer of the
remaining slot machine royalties owed by Severn Enterprises S.A.
("Severn") to DEQ in exchange for the balance of remaining payment
of the purchase price of the exclusivity agreement from DEK
International due in July 2011. This settlement agreement sees DEQ
assigning and transferring all amounts payable as royalties by
Severn to DEK International for the remainder of the 10 year
Agreement that started in 2005. This transfer of the defaulted
royalties to DEK International will completely discharge and
release DEQ from any and all obligations regarding the final
payment of the balance of purchase price of US$883,000 due to DEK
International on July 31, 2011. While DEQ has continually disclosed
the risks and poor performance of the Severn Project, the total
cash flow received from this project since its inception and
including this final transaction represents 81% of the total amount
of US$5.75 M loaned to Severn by DEQ which means that DEQ has
retrieved the vast majority of its investment from this project.
Since the early stages of this Guatemala project, the Severn
casinos have not developed or performed as expected. DEK
International, a major shareholder in Severn, has even paid several
of DEQ's royalty payments on behalf of Severn, in a temporary move
to avoid default and protect their own investment in the project
with the hope that the financial situation would improve. This
support ceased during the fourth quarter of 2010, as the economics
and outlook of Severn remained dismal. DEQ explored several options
with external legal counsel including and not limited to legal
action. Based on the legal and other external opinions received,
DEQ's management was convinced that the best option was to seek
financial relief for the failed Severn Project and commenced
negotiations with the parties involved. These negotiations came to
a conclusion in March 2011. The transfer of the slot machine
royalty due by Severn to DEK does not affect in any way the royalty
collected on a monthly basis from DEK International on the
operation of approximately 380 tables with the G3 System that are
currently in operations in more than 150 casinos located in South
America and Eastern Europe. "While Severn served a clear
purpose during the early stages of the financing and structuring of
DEQ, the operational shortcomings of this project created a
significant business risk that we have done our best to offset by
leveraging the defaulted royalties." stated Earle G. Hall,
President and CEO of DEQ. "DEQ is now a debt free company with a
solid balance sheet. Our product install growth is very significant
and looking at Q1 2011, DEQ installed 141 leased products compared
to Q1 2010 where DEQ installed 66 for a growth rate of well over
100%. Our accelerated growth will offset this loss of royalties of
approximately $200,000 per quarter in the near term and as we look
to the future, we are very excited with not only our geographical
growth but our product penetration per casino and the new products
we are launching in 2011." ABOUT DEQ Founded in 1998, DEQ Systems
Corp. (TSXV: DEQ) is a leader in the table game bonusing technology
field. DEQ's patents, products and features include side bet
bonusing games with progressive and random jackpot prizes, slot
machine style mystery bonusing, multiple credit and denomination
betting flexibility, dealer hand betting, electronic credit bank,
electronic rake, baccarat hand tracking, multimedia animation and
sound effects. DEQ has an extensive patent portfolio that is
recognized in more than 50 countries such as the USA, Macau,
Australia and Canada. DEQ's bonusing solutions and products are
present in more than 300 casinos in over 30 countries. For further
information, please visit www.deq.com TSX Venture does not accept
any responsibility regarding the accuracy of the information
contained in this press release. Forward-looking statements
contained in this Press Release involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance and achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the said forward-looking statements. To
view this news release in HTML formatting, please use the following
URL: http://www.cnw.ca/en/releases/archive/March2011/07/c8724.html
table border="0" valign="top"trtdEarle G.
Hall br/ President &
CEO br/ DEQ Systems
Corp. br/ p: (418)
839-3012 br/ e: a
href="mailto:earle.hall@deq.com"earle.hall@deq.com/a /td
tdFrancois Proulxbr/ Chief Financial Officerbr/ DEQ Systems
Corp.br/ p: (418) 839-3012br/ e: a
href="mailto:francois.proulx@deq.com"francois.proulx@deq.c/aa
href="mailto:francois.proulx@deq.com"o/aa
href="mailto:francois.proulx@deq.com"m/a/td/tr/table
Copyright
Grafico Azioni DEQ Systems Corp. (TSXV:DEQ)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni DEQ Systems Corp. (TSXV:DEQ)
Storico
Da Lug 2023 a Lug 2024
Notizie in Tempo Reale relative a (Venture Exchange Canada (TSXV)): 0 articoli recenti
Più Deq Systems Corp Articoli Notizie