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."