Rotate Black, based in Petoskey, Michigan, recently provided shareholders with a status report on the company’s business plan objectives and achievements.
In Gulfport, Mississippi, the company is moving forward with developing the Hemingway Casino Resort. It recently offered a reverse stock split, entering into agreements with note holders for the conversion of their debt to equity at $0.90 and an agreement to increase warrant exercise prices from $0.90 a share to $3.50 a share on a post close basis; releasing of
$1.9 million in debt; and reaching an agreement to eliminate other outstanding debts of $7,386,005 for a cash payment of $1,250,000 and 400,000 shares of common stock. These actions will provide the company with minimal debt on its balance sheet and significantly increase equity value, company officials said.
The company’s SlotOne subsidiary also has made progress with its Class II slot machines through the exclusive licensing of industry leading slot games and operating systems. As a result, less time will be required for the company to meet the current Class II slot machine demands sought by the $26 billion Native American casino market, company officials noted.
Based on Rotate Black’s extensive experience in managing casino gaming floors, SlotOne delivers a powerful competitive advantage with being able to identify slot floor deficiencies, retool for those deficiencies and increase overall revenue and earnings. With this advantage, SlotOne was developed to own and operate slot machines on a fixed daily rate or percentage basis to well established casinos, company officials said. In addition, SlotOne can deliver state-of-the-slot machines along with significant savings (up to 27 percent of revenue) to tribal casinos on a no-upfront-cost basis.
Rotate Black officials noted SlotOne will distribute a variety of innovative Class II gaming machines that can expand existing sales and open new lines of sales for Rotate Black customers. Through refined Class II technology, SlotOne games look and play like the traditional Class III games, but offer significant cost advantages through the speed of technology and programmed mathematical calculations that mimic Class III games as closely as possible while remaining within the Indian Gaming Regulatory Act’s definition of Class II bingo, the officials stated.
Rotate Black’s Chief Executive Officer John Paulsen said, “This is really an exciting time for the Company. The coupling of these two business plans–brick and mortar development combined with the exponentially growing cash flows from the slot participation business–provide us with an unparalleled opportunity to build shareholder value.” Rotate Black President Dual Cooper added, “The foundation is now in place to execute upon our vision and we could not be better positioned in the market place for expansive growth.”
