The management at US gambling software company Interactive Systems Worldwide Incorporated (ISWI) was in high spirits this week as it announced the signing of a letter of intent with Shantech Incorporated that is a preliminary move toward a significant non-exclusive marketing and business development agreement.
Shantech will market ISWI's products internationally with an emphasis on particular Asian gaming markets in terms of the deal, and in addition will invest $2 million in ISWI in return for 20 percent of common stock up to 2.4 million shares. Shantech may also receive 50 percent warrant coverage for five years, which would be exercisable at a five percent premium to the closing market price six months after issuance.
Shantech's marketing and business development services will be rewarded by commission fees based on the revenues generated by its efforts. There are also incentive bonuses in ISWI equity, subject to shareholder approval, for achieving certain targets. These include generating at least ten million dollars in revenues with at least 25 percent in net profits over the first year or creating $30 million with 25 percent profits over the first 24 months.
ISWI stated that the combination of strategic investments and incentive bonuses, if achieved, would likely result in Shantech becoming a controlling shareholder.
ISWI's Chief Executive Officer Bernard Albanese commented: "This is an exciting day for ISWI. The proposed agreement is an opportunity to enter Asia's substantial and growing gaming marketplace. Suneel Sawant, the founder and Chief Executive Officer of Shantech, has an impressive track record of creating value through the development of meaningful strategic relationships in Asia."