|In an agreement with their single largest shareholder, AngelCiti, the company behind a variety of online casinos, including Lucky Dog, have made the audacious move of retiring 80 million shares.|
George Gutierrez, AngelCiti president: 'As recently announced, the AngelCiti has retained Marlin International Venture Capital, to assist in the raising of up to $15 million dollars to aid in the rapid expansion of the business. This transaction with Omega has materially increased our funding options and opportunities and we look forward to rapidly completing prospective fundings to grow the company at an even greater pace.'
The shareholder Omega Ventures, will exchange the shares for 12,000 voting shares instead. Each one will be worth 5,000 votes and won’t be transferable to standard shares. Omega are so confident in AngelCiti’s performance they even returned 5 million additional shares that they had originally discussed.
Well, if you’re the largest shareholder in a company you have a vested interest in that suddenly needs to raise large capital to expand, why wouldn’t you release some shares in return for even more say in what the company gets up too. Especially when current estimates on the Internet gambling industry, from the likes of InformaMedia Group, predict staggering overall revenues in excess of $14.5 billion as soon as 2006.