|Innovative Gaming Corporation of America has announced that it has secured $10 million in lease financing from an institutional lender. The financing is aimed to help expand its Participation Placement Program in the United States. This program refers to the positioning of a slot machine with a casino operator where, as opposed to an outright sale, the manufacturer subsequently collects a participation percentage of the winnings.|
CEO for IGCA, Laus Abdo, stated:
“One of my first goals on joining the company was to obtain debt financing to strengthen the company’s ability to place equipment through sales and participation arrangements. This financing will enable the company to grow its recurring revenue stream through participation agreements and is consistent with the Company’s financing strategy. Casino operators are increasingly utilizing participation placements to decrease required capital expenditures. The proven earning potential of our existing product line coupled with the Company’s new game titles and equipment to be unveiled at the October gaming shows in Las Vegas, position IGCA to take full advantage of the Participation Placement Program”.
Innovative Gaming Corporation of America develops, manufactures and distributes fast playing, high entertainment gaming machines. The company distributes its products through licensing distributors and directly to the gaming market. Chairman and CEO, Roland Thomas, said, “I am very pleased that Laus and our financial team have been able to put this arrangement in place without issuing any equity, in a relatively short amount of time, given the recent fluctuations in the financial markets. Demand for our products remains high and this will further strengthen our position”.