|In an attempt to find new secure ways of paying for internet gambling, Gamebase has gained exlusive rights to use FreeStar Technologies revolutionary debit and ATM PIN- authenticated swipe card, PaySafeNow.|
Gamebase International is a privately held company engaged in building an end-to-end software solution for gaming processing.
Effective August 1, 2002, Gamebase will assume the development, integration, sales, marketing and financial administration of the FreeStar/Gamebase joint venture.
The terms of the deal provide for the parties to equally share the gross profits on the sale of all FreeStar ePayPad payment authentication devices sold by Gamebase through its established sales and marketing channels.
'FreeStar clearly has a differentiated online payment solution that has the potential of revolutionizing the way that consumers securely purchase products and services over the Internet,” said Gamebase leader Robert Brazell. “Moreover, PaySafeNow clearly empowers online merchants with the ability to receive immediate, guaranteed payments without contending with credit card charge-backs and identity fraud.
“It is our intent to integrate the PaySafeNow online payment solution into our end-to-end gaming processing solution currently being marketed to offshore gaming enterprises through our subsidiaries, joint venture partnerships and strategic alliances.'
Paul Egan, President and Chief Executive Officer of FreeStar, added, 'Gamebase have the required industry influence and depth of resources to facilitate wide and rapid acceptance of PaySafeNow at a much more accelerated rate than we believed possible by going it alone. This is a milestone event in the evolution of FreeStar Technologies, and one that we have every hope of maximizing with our new valued joint venture partner.'
In addition, FreeStar has agreed to commit to making a $3.5 million investment in Gamebase in exchange for a 12.5% share ownership of the Company and its affiliates, as well as a seat on Gamebase's Board of Directors. Pursuant to an option package that is subject to certain vesting and performance-driven considerations, Gamebase will be entitled to earn a 25% non-dilutable interest in FreeStar upon full exercise. Upon all options being exercised by Gamebase, FreeStar will realize cash proceeds of $5.85 million. Lastly, Gamebase has agreed to guarantee the convertible debenture issued by FreeStar pursuant to a private placement arranged previously by vFinance.