LVFH Executes LOI with Codere Group and Salinas TV Azteca Group
VANCOUVER, British Columbia--(BUSINESS WIRE)--Las Vegas From Home.com Entertainment Inc. (the “Company” or “LVFH”) (TSX-V: LVH) (US OTC Pink Sheets: LVFHF) (Berlin: LVH) (Frankfurt: LVH). LVFH is pleased to announce that it has entered into and has executed a letter of Intent (“LOI”) with the Mexican entity of the Codere Group (“Codere”) and its Mexican partner the Salinas TV Azteca Group (“Azteca”) in respect to a partnership for online gaming in Mexico.
Codere is a leading Spanish Multinational Gaming Company and a key player in the gaming sector in Europe and Latin America with operations in gaming halls, gaming machines, racetracks, and sports betting. Since its founding over thirty three years ago, Codere holds a position of leadership in the core business lines and geographic areas where it operates, being the biggest bingo hall operator including casinos in Mexico, the biggest gaming sector operator in the Province of Buenos Aires, Argentina, and the top gaming operator in other growth markets such as Italy, Panama, Columbia, Brazil and Uruguay. The securities of Codere are listed for trading on the Madrid Stock Exchange under the trading symbol “CDR”. For further information about Codere, please visit www.Codere.com.
Azteca, previously known as TV Azteca, is a Mexican multimedia conglomerate owned by Grupo Salinas. It is the second largest mass media company in Mexico. The Grupo Salinas owns businesses that participate in the television and the telecommunication sectors, banking, and retail markets amongst others. It has over 5,500 employees and has a strong presence in Latin America and the U.S.A. For further information about Azteca please visit www.Azteca.com.
Pursuant to the LOI, a new company shall be incorporated in Mexico (“NEWCO”). The shareholders of NEWCO shall be Codere as to 51% and LVFH as to 49%. NEWCO shall participate in 51.03% of the profits and losses of a Mexican partnership which was established by means of an association agreement entered into on September 28, 2012 between Codere and Azteca (the “Mexican Partnership”). Effectively, LVFH’s ownership and share of profits from the Mexican Partnership shall be 25%. In addition to receiving its share of profits, LVFH shall also license its gaming platform to the Mexican Partnership and will receive ongoing software licensing royalties for its use thereof.
The Mexican Partnership has a federal gambling license and is one of the few legal online gaming portals in Mexico. The Mexican Partnership shall solely and exclusively use LVFH’s Gaming Platform for its online gaming website www.greenplay.mx and also for its sister gaming websites. It is anticipated that www.greenplay.mx shall commence operations by August 20, 2014. All decisions of NEWCO and the Mexican Partnership shall be made jointly by the partners. LVFH shall also have the right of first refusal to participate in any business opportunities that may arise in any new territories in the Americas in which the Mexican Partnership decides to get involved in. LVFH shall contribute for its share the amount of US $4,000,000 in NEWCO for the development and marketing of the Mexican Partnership’s online gaming business.
The Mexican Partnership will benefit from LVFH's latest HTML5-based games and its Gaming Platform, which provide customers the ability to play games across all major platforms and devices, including PC, Mac, iOS and Android devices. Customers will enjoy selecting from a wide array of gaming content, including bingo, sportsbook, poker, and a comprehensive suite of high-quality casino games such as slots, blackjack and roulette. Most importantly, the LVFH Gaming Platform is localized for the Mexican marketplace, allowing customers to play with Mexican Pesos and use local payment options.
LVFH’s President and CEO Mr. Jake H. Kalpakian states: “We are thrilled at this development, as LVFH shall now be associated with a leading Multinational Gaming Company such as Codere and with a multimedia conglomerate such as Azteca. LVFH shall benefit significantly from this enviable position of participating legally in the huge Mexican iGaming Market and with the opportunity of being able to get involved in other countries in the Americas where online gaming is legal.” Mr. Kalpakian continues, stating: “This partnership with the Salinas Group in Mexico shall allow the Mexican Partnership to promote and market its operations in Mexico via television and the use of the Salinas Group’s diversified companies and networks. It is anticipated that the revenues that shall be generated from this partnership shall enable LVFH to become profitable.”
In order to make its contribution in NEWCO, LVFH plans to utilize funds on hand, funds from the exercise of outstanding warrants, and from the proceeds of a non-brokered private placement financing of 5 million LVFH units at a price of 10 cents per LVFH unit, each unit consisting of one LVFH share and one LVFH share purchase warrant exercisable at 10 cents per share for a period of five years (the “Private Placement”). The Private Placement shall be subject to the approval of the TSX Venture Exchange.
The parties to the LOI have agreed to enter into Definitive Agreements on or before September 15, 2014. The Definitive Agreements shall include, but shall not be limited to, anti-dilution provisions and other provisions which are customarily used in transactions of this nature. The Definitive Agreements shall be subject to the approvals of the TSX Venture Exchange, the Codere Group and Azteca.
Since 1999, LVFH has been a reputable provider of innovative gaming software spanning Poker, Casino, and other popular multiplayer games. The Company’s successful and lengthy track record in gaming software development, financial accountability and cardroom operations has made LVFH one of the leading software developers in the industry.
For more information on the Company:
Jake H. Kalpakian,
President & CEO, LVFH
(604) 681-0204 ext. 6105
Transcend Resource Group
Office: (604) 681-0037
Mobile: (604) 805-2126
Statements in this news release which are not historical facts are “forward-looking statements” that involve risks and uncertainties. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the closing of the proposed transaction may not occur for any reason. The reader is cautioned not to place undue reliance on forward-looking statements.
Trading in the securities of the Company should be considered speculative.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.