Financial Main Page
International Guild of Hospitality & Restaurant Managers
1801 Century Park East, 23rd Floor
Los Angeles, CA 90067
Phone: (310) 551-0011
Fax: (310) 551-1942
Employees (last reported count): 4
Vegas Entertainment Network, Inc. (LVEN), incorporated in October 1990, is
engaged in the business of acquiring, developing and operating media and gaming
facilities including real estate redevelopment. LVEN is actively seeking other
investments and acquisitions and currently has several projects under
consideration, which are subject to further due-diligence and analysis. These
investments may include acquiring interests in communication companies, casinos,
hotels or other ancillary businesses in the gaming industry. No revenues were
reported for fiscal 1998 and 1997.
The Company initially developed, produced and distributed television programming featuring entertainment in Las Vegas, Nevada. LVEN changed its focus to the gaming industry in 1993 with the acquisition of the El Rancho Hotel and Casino in Las Vegas, Nevada. However, on January 22, 1996, the Company sold the El Rancho to International Thoroughbred Breeders, Inc. (ITB) for $43.5 million.
Investment in ITB
On May 22, 1997, LVEN, ITB and Credit Suisse First Boston Mortgage entered into a Bi-lateral agreement and a Tri-lateral agreement, whereby the Company converted the $10.5 million receivable evidenced by the B-Note together with accrued interest thereon of $1.1 million into approximately 2.1 million restricted shares of ITB common stock. On or about October 10, 1997, former and/or current directors of ITB filed an action against ITB and its other directors, LVEN, the Company's Chairman and certain other individuals. On July 2, 1998, the Company entered into a Stipulation and Agreement of Compromise with all parties. Upon the effectiveness of the Settlement, all prior agreements between or among LVEN and ITB including without limitation the Bi-Lateral Agreement and the Tri-Party Agreement, pursuant to which ITB issued to the Company approximately 2.1 million shares of ITB Common Stock were terminated, and LVEN returned all shares to ITB for cancellation. Additionally,the Company expects to finalize a partnership plan or an outright sale of the El Rancho Hotel and Casino in Las Vegas, Nevada by the end of the second fiscal quarter.
Development of Electronic Bingo Machine in Brazil
On May 25, 1998, the Company's wholly owned subsidiary Casino-Co entered into an agreement with MG Entertainment, a Brazilian Company (MG) to provide Bingo Machines. MG is located in Porta Alagre, Brazil and has planned developments for multiple locations in which they will commence deployment of the machines. Under terms of the agreement, Casino-Co will sell and deliver to MG 10,000 electronic bingo machines to be delivered at approximately 1,000 machines per month over a twelve-month period. The schedule and number of machines may vary according to development and successful implementation of the plan. This agreement provides that LVEN will be the exclusive provider to MG of the machines or any other gaming machines through 2008.The Company has entered into an investment banking agreement to raise additional working capital for Casino-Co and its Brazilian gaming machine project.
LVEN does not have a formal agreement for the purchase and financing of the Bingo machines, but the Company has entered into discussions with several companies for the purchase of up to 10,000 of these machines. LVEN is currently seeking financing for the purchase of these machines and is negotiating the final terms of such a financing arrangement.
Nordic Gaming (Fort Erie Racing Operations)
During 1997, the Company acquired 80% of the voting equity of Nordic Gaming Corporation, a Canadian corporation. On August 23, 1997, Nordic acquired certain real property and assets known as the Fort Erie Racetrack, which is situated on 143 acres in Fort Erie, Ontario, Canada. The Fort Eric Racetrack offers live, as well as simulcast, thoroughbred horse racing. Additionally,the racetrack was notified by the Ontario Lottery Corporation that it was eligible to receive 621 video lottery terminals (VLT) and may receive an additional 130 VLTs or more based upon performance. LVEN paid to Nordic $182,000 that was used as the advance deposit to acquire the racetrack, and the Company also agreed to provide Nordic a working capital line of credit. In addition to the deposit, LVEN expended $134,548 for financing and legal costs in connection with the proposed acquisition.
Electronic Media Delivery
LVEN formed a subsidiary called Electric Media Company Inc. (EMC) to develop technology that if successful will allow delivery of video voice and/or data communications over electric power lines or other forms of transmission including cable, telephone and microwave. EMC is 75% owned by the Company.
For the years ended October 31, 1998 and 1997, LVEN expended $503,000 and $1 million, respectively in developing this technology.
Live Entertainment Management
As part of the sale of the El Rancho Property to ITB in 1996, the Company obtained a contract to manage all aspects of the entertainment activities at the proposed CountryLand Hotel and Casino. Concurrent with the ITB settlement and stipulation agreement entered into on July 2, 1998, this agreement has been canceled.
LVEN is actively seeking communications, gaming and lodging investments and acquisitions and currently has several projects under consideration. The Company has entered into an investment banking agreement to raise additional working capital for its wholly-owned Casino-Co subsidiary and its Brazilian gaming machine project. Pursuant to a proposed offering, LVEN may distribute shares of Casino-Co to current shareholders.
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.
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