News

GameCom acquisition plans blast off

March 12, 2002

ARLINGTON, Texas - Gaming kiosk designer GameCom Inc., whose shareholders are to vote on a merger with Ferris Productions Inc. on Sept. 21, plans to keep playing the acquisition game if its Ferris merger is successful. The company announced on Sept. 21 it would receive $1 million in funding from investment firm Olympic Holdings, with the firm agreeing to target acquisition targets for GameCom.

Under the terms of the agreement, Olympic will fund GameCom with convertible debentures in three phases, the first starting next week. Full funding will be complete by Nov. 15. The debentures can be converted into common shares of GameCom stock at each funding stage, and there is no provision for Olympic to gain the shares at a discounted price.

"Olympic exhibited real interest and excitement over the future of our company," said L. Kelly Jones, GameCom chief executive officer, in a news release. "In addition, the extremely favorable conversion terms of the debenture reflect Olympic's confidence in our ability to execute upon our business plan."

GameCom shareholders were supposed to vote on merging with Ferris, a virtual reality entertainment company, on Sept. 14. But the vote was postponed a week because of the terrorist attack on the World Trade Center on Sept. 11.

A suit by Entertainment Technologies & Programs Inc. (ETPI), which alleges Ferris broke the terms of a letter of intent it signed with ETPI before announcing its merger agreement with GameCom, is pending. Ferris and GameCom were scheduled to file a motion for summary dismissal of the suit this week.

"Once the Ferris merger is completed, Olympic will assist us in our continuing efforts to look for opportunities to expand our reach in the interactive computer gaming and virtual reality fields," Jones said.