Vega Update to Shareholders
LONDON, Oct 02, 2008 (BUSINESS WIRE) -- VEGA PROMOTIONAL SYSTEMS, INC. (Pink Sheets: VGPR.PK) today issued the following update to its shareholders.
The purpose of this letter is to update our shareholders with information concerning the current structure and business operations of the Company.
Part of our recent restructuring of the Company included changing transfer agents and we are proud to announce that Action Stock Transfer Corp. is our new transfer agent. Our investor relations department will work closely with ASTC to assure that we provide correct and up to date capital structure information to our shareholders.
As of the close of business yesterday, the following is the current share structure of VGPR:
Total restricted shares: 78,015,126
Total free trading shares: 20,952,661
Total issued 98,967,787
We are also in the process of updating our disclosure information to Pink Sheets and are planning to have the information posted on their website within the next couple of weeks.
The following is an update on the current business of the Company:
One are of operations is our Software Services. We have entered into a Purchase Agreement to acquire unique proprietary software for the online gaming industry. We are in the process of setting up the necessary servers to accommodate the software and are planning to have the transaction completed and the software up and running during this fourth quarter. This is a major acquisition for our company and will provide us with the ability to expand our business throughout the world and create substantial, ongoing revenue for the Company. This software will provide us with the necessary tools to develop the Vega Gaming Network where players from all over the world will play together on websites that have licensed the software from Vega.
The strategy that we believe will make Vega successful in the online gaming industry is to recognize that online gaming is a service, not a product. We will have to satisfy our customers not only at the time of purchase, but over and over again. This is distinctly different than developing console based games and provides a completely different revenue model, one of constant, reoccurring, predictable and stable growth. There has been enormous growth recently in online gaming. DFC Intelligence has forecast that the worldwide online game market is expected to grow from $3.4 billion in 2005 to more than $13 billion in 2011. By acquiring the software and building the Vega Gaming Network, we are positioning the Company to be a major player in the online gaming market.
Our Media Production team is actively working on the details for the Poker Tour of the Americas. The PTA is a series of live poker tournaments to be held in locations in North and South America. The Tour, similar to the World Poker Tour, will be filmed for television and Vega will be the Executive Producer for the programming. As Executive Producer, we will own the content and will be responsible for selling the advertising for the programming. Rather than sell the idea to a television network, we will purchase the necessary airtime to run the programming. The programs will be aired throughout North and South America and Vega will profit from the sale of advertising each time the programs are aired. Several potential locations have been identified and we are in the process of securing a total of six locations for the inaugural season. We are also negotiating with potential sponsors for the Tour that would offset the onsite production costs. We will have more detailed information
concerning the PTA in a future release.
We want to thank our loyal shareholders for their continued patience and understanding during this time of growth and look forward to providing further information on the projects we are working on as we move forward.
Michael Herron
CEO
About Vega Promotional Systems, Inc.:
Vega Promotional Systems, Inc. is a promotions and marketing company that is seeking complementary business opportunities that will allow it to increase its shareholder value. The Company's stock trades under the symbol VGPR on the Pink Sheets.
