BURNABY, BC, Sept. 5 /CNW/ - ESI Entertainment Systems Inc. ("ESI")
(TSX:ESY) today announced that it has entered into a Letter of Intent for the
disposition of its wholly owned subsidiary ESI Integrity Inc.
In order to allow management to focus primarily on its payment processing
business, ESI has been seeking to divest its interest in ESI Integrity Inc.
Furthermore, the management of ESI Integrity Inc. supports the divestiture as
it seeks to capitalize on strategic growth opportunities in the provision of
security, audit and risk management solutions to the regulated gaming
Under terms of the Letter of Intent, ESI Integrity Inc. and all of its
assets, contracts and resources will be sold for a consideration of
USD $2 million. ESI Entertainment Systems Inc will use these funds to
immediately reduce its debt obligations. It is anticipated that a formal
Agreement of Purchase and Sale will be entered into within the next four
weeks. Closing of the proposed transaction is anticipated to take place during
October 2008, it will be subject to the terms of the formal Agreement,
including due diligence, and will be subject to all relevant regulatory and
other consents and approvals.
Michael Meeks, President of ESI stated, "The divestiture of ESI Integrity
will allow ESI to focus more tightly on the significant opportunities we have
created for renewed growth via the unique Internet Banking payment service
provided by our Citadel Commerce Corp subsidiary. We believe that this
strategy is in the best interest of our shareholders and management is working
hard to make it happen."
Alan Ahac, President of ESI Integrity stated that "Our strategic
objective is to further develop our leadership in the provision of products
and services for security, audit and risk management to the international
regulated gaming industry over the next two to three years, and to diversify
into other non-gaming markets in the longer term. ESI Integrity's technology
and existing customer base will allow the combined company to move more
quickly towards this objective."
About ESI Entertainment Systems Inc.
ESI Entertainment Systems Inc. (TSX: ESY) provides products and services
to the international gaming and payment processing industries through its
three principal subsidiaries, Citadel Commerce Corp., ESI Integrity Inc. and
For further information:
For further information: ESI Entertainment Systems Inc., Tony Greening,
Chief Executive Officer, Telephone: (604) 299-6922, email: email@example.com,