PEMBROKE PINES, Fla., Aug. 15, 2003 (PRIMEZONE) -- AngelCiti Entertainment, Inc. (OTCBB:AGLC) announced that effective September 4, 2003, it has completed an agreement with its single largest shareholder, Omega Ventures, pursuant to which Omega will return an additional 29 million common shares to treasury in exchange for 2,000 Preferred "Series A" shares, created by the Company. The Series "A" shares, are solely voting shares at 5,000 votes per share, and are not transferable into common shares of the Company. This reduces the company's issued and outstanding common shares to approximately 41 million shares. Based upon Company guidance for next year and the share retirement, the Company is currently only trading at approximately 4.25 times next year's projected earnings.
"We are getting very close on some prospective financings and this re-capitalization significantly increases our funding options and opportunities," stated AngelCiti president George Gutierrez. "We will be able to materially increase our growth and should easily exceed previous guidance with attractive funding in place."
The Industry
A Bear Stearns report for the industry pegs annual revenue at $4.2 billion for 2003, while Christiansen Capital Advisors predicts a slightly more rosy picture pointing to an estimated $4.5 billion in revenue for calendar year 2002, saying 2005 revenue could exceed $10 billion. InformaMedia Group, which tracks electronic gambling predicts that online gaming revenue will even reach $14.5 billion by 2006.
The Company
AngelCiti's wholly owned subsidiary Worldwide Management provides gaming software to numerous online casinos including SharkCasino.com and TheHouseWins.com and currently services casinos in English, Spanish, German and Chinese.
This news release contains forward-looking statements regarding AngelCiti's business strategies, financial projections and future plans of operations. Forward-looking statements involve known and unknown risk and uncertainties. The company's risks and uncertainties include: intense price competition, economic, favorable capital markets, political and regulatory uncertainties, the need to raise additional capital for growth and expansion and its reliance on the internet as a means for promoting the software it sublicenses. The forward-looking statements contained in this news release speak only as of the date hereof and AngelCiti disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in AngelCiti's expectations or future events.