ITQ 0.00% $7.12 intecq limited

Convertible note triumph for eBet

  1. 420 Posts.
    The following announcement guarantees eBet is soon to become one of the largest cashless gaming enterprises not just in Australia, but in fact the world as it buys out its major Australian rival. From here on in, I can see the company going from strength to strength, particularly as it expands its lucrative offshore operations.

    eBet will undoubtedly become an icon in the niche area of cashless gaming. An Aussie success story in a sea of mediocrity. Great stuff.


    Leading gaming & wagering technology company eBet Limited today provided an update regarding its intended acquisition of gaming systems competitor Turbo Bonus, and its associated prospectus offering of redeemable convertible notes.


    The Company said that it had now confirmed firm allocations to UK and Australian institutions, professional investors and existing eBet shareholders (applying under the Priority Allocation) exceeding the minimum subscription amount of $7 million. It said that the Priority Allocation for existing shareholders was now closed however existing shareholders could still apply under the offering to the general public.

    The prospectus is scheduled to close on 1 November 2002, however the Company said that it intended to keep the prospectus open to allow acceptance of applications from the general public, up to the maximum subscription level of $8 million.

    The prospectus can be obtained by phoning eBet's offices during business hours on (02) 87488000. An electronic copy of the prospectus can be downloaded from


    A general meeting of members is scheduled for 4 November 2002 to consider various resolutions related to the acquisition and prospectus offering. The Company said that it had received proxy votes overwhelmingly in favour of the resolutions. On this basis it anticipates that each of the resolutions will be passed at the meeting.


    Having achieved the minimum subscription level and in anticipation of necessary resolutions being passed at the general meeting, the Company anticipates that it will assume control of the Turbo Bonus Business on Monday 18 November 2002.


    The Company said that it anticipated that the acquisition would have a material impact on its Gaming Systems Division's FY2003 revenue, and accordingly on consolidated revenue of the eBet group.

    It said that, based on successful completion of the acquisition, and an assumed takeover date of 18 November 2002, it anticipated that consolidated revenue for FY2003 would reach $23 million (FY2002: $9.1 million). Of this, the Company anticipates that the Gaming Systems Division will contribute approximately $16 million (FY2002: $4 million).


    The Company said that the Turbo Bonus Business would be integrated with its existing Gaming Systems Division operations as soon as practical, post acquisition.

    The Company expects that the majority of integration and restructuring costs, and certain acquisition costs (estimated at up to $1.2 million combined) will be expensed in the Company's FY2003 accounts, and, as such, will have a one-off impact on profitability for FY2003.

    The Company said that following restructuring of the merged operations that it expected that based on anticipated revenue group expenses (including one-off costs but excluding non-cash items) could be contained to approximately $16.3 million for FY2003 (FY2002: $9.9 million), resulting in positive EBITDA of approximately $6.8 million for FY2003 (FY2002: negative $818,000).

    Group NPAT will be impacted by interest expense associated with the convertible notes to be issued to fund the acquisition of the Turbo Bonus Business and increased depreciation and amortisation resulting from the acquisition of fixed and intangible assets. On this basis the Company anticipates a full year NPAT result of approximately $2.4 million.


    The Company said that it anticipated lodging its Appendix 4C for the September 2002 quarter later today or tomorrow. It anticipates that operating cashflow for the period will be approximately negative $500,000.

    The Company said that the result was impacted by lower-than-anticipated receipts from new gaming systems sales due to a number of larger customers postponing decisions to purchase its new cashless gaming system (EPS) due to industry speculation regarding its acquisition of Turbo Bonus and certain technical difficulties encountered at some initial installations of EPS. The Company said that it expected later quarters in the year to improve considerably due to the finalisation of the acquisition and the resolution of the aforementioned technical issues. It said that it anticipated that a building of momentum of EPS sales would see Gaming Systems divisional revenue climb sharply in the second half of the year.

    Online Division receipts for the first quarter remained strong. The Company said that recent developments, such as the launch of the Online Division's Sports Acumen website and the launch of, were expected to further accelerate growth of the division.

    Non-operating cash outflows for the quarter would include approximately $190,000 of investment in intellectual property; and approximately $190,000 in deferred payments associated with previous acquisitions.

    Cash at the end of the quarter was $1.2 million.

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