TVG Technologies (Nasdaq:TVGTF.PK), a secure smart card crypto interfacing systems developer, has signed an agreement with Las Vegas-based online casino company SuperCasino to supply its SmartNet system. The value of the products to be supplied to SuperCasino, along with other customers in the deal who were not named, is estimated at $50 million.
SmartNet was developed by TVG Technologies in cooperation with Intel over a five year period. SmartNet will be supplied with software applications for online casino with multi users. SmartNet's main features include very high security protocols developed by TVG to transfer money with a smart card (Java card from Sun Microsystems) over the Internet using a mobile device.
TVG and SuperCasino agreed to jointly build a new plant in Switzerland at the cost of $3 million to produce TVG's SmartNet product. The customers and TVG plan to finance the project through special Swiss government tax-free programs and bank loans.
In addition, TVG is planning to build a new facility for R&D and software house in the Har Hotzvim high- tech park in Jerusalem, Israel at a cost of $6 million. TVG plans to hire approximately 100 new workers for the development of new software and applications to support this deal and others.
TVG is in negotiations with an $800 million investment fund, which was not named, to raise $6 million through a standby equity financing mechanism. The arrangement would allow TVG, at its discretion, to issue shares to the investment fund up to a maximum value of $6 million at any time over the next two years. TVG stated that it will be able to take advantage of periods of price strength to reduce the number of shares issued for the funding by executing a capital advance when TVG's stock price is high.
Published by Globes [online] - www.globes.co.il - on Monday, December 06, 2004