LAS VEGAS, NEVADA, April 26 /CNW Telbec/ - DEQ Systems Corp. (TSXV: DEQ)
announced today that it has entered into a five (5) year patent licensing
agreement and joint research and development agreement (the "Agreement") with
Station Casinos, Inc (NYSE: STN) ("Station") that is valued at more than
CDN $3 million. Concurrently with entering into the Agreement, Station
completed a private equity placement in DEQ.
The Agreement includes a one-time patent licensing fee and annual royalty
payments over five (5) years that total approximately CDN $3 million. The
Agreement also calls for DEQ and Station to expend additional financial and
human resources to jointly develop and obtain regulatory approval of certain
new technology. The Agreement also includes an option for Station to extend
the term for an additional five (5) years, which would provide DEQ with
additional royalty payments.
Bill Warner, Chief Operating Officer of Station Casinos, stated "We are
looking forward to working with DEQ to leverage its patent portfolio in
developing table game bonusing concepts which will provide additional gaming
entertainment value to our customers." "We like DEQ's vision for gaming
entertainment, its intellectual property, and its approach. We feel that it's
a very good strategic fit for our company," Warner added.
Mr. Earle G. Hall, President and Chief Executive Officer of DEQ stated:
"Station Casinos has a proven business model in one of the most competitive
casino markets in the World, the Las Vegas locals' gaming market. To attract,
entertain and retain its customers, Station has excelled in offering value to
very discriminating customers. DEQ is pleased to have been chosen as Station
Casinos' leading provider of side betting and table games bonusing
technologies for table games."
Station's equity investment, as well as the first annual royalty payment,
has been made upon the signature of the Agreement and closing of the
placement, while the one-time licensing fee will be paid upon receipt of all
necessary Nevada gaming regulatory approvals for DEQ's G3 table games bonusing
As part of this strategic alliance, DEQ has completed a private equity
placement by Station for 900,000 units of the Company, at a subscription price
of CDN $0.65 per unit, for an aggregate amount of CDN $585,000. Each unit
consists of one common share of the Company and one common share purchase
warrant. Each warrant entitles Station to purchase one common share at an
exercise price of CDN $0.85 prior to the first anniversary of the closing date
of the private equity placement; CDN $1.00 between the first and second
anniversary dates; CDN $1.25 between the second and third anniversary dates;
CDN $1.35 between the third and fourth anniversary dates; and CDN $1.40
between the fourth and fifth anniversary dates. The securities issued within
the scope of this private placement are subject to a four-month hold period.
Canaccord Adams, acting as the financial advisor to DEQ in this strategic
transaction, will receive a CDN $50,000 fee.
DEQ (TSXV: DEQ) is a worldwide provider of gaming technology products
including multiple bet electronic side-betting systems. DEQ's products are
present in 200 casinos located in more than 30 countries around the world. DEQ
has developed and holds an extensive international patent portfolio that is
the basis of the current product line.
TSX Venture does not accept any responsibility regarding the accuracy of
the information contained in this press release.
Forward-looking statements contained in this Press Release involve known
and unknown risks, uncertainties and other factors that may cause actual
results, performance and achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by the said forward-looking statements.
For further information:
For further information: Earle G. Hall, President & CEO,
firstname.lastname@example.org; François Proulx, Chief Financial Officer,