HUNTINGTON, N.Y., Jan. 26, 2015 /PRNewswire/ -- SeanieMac International, Ltd. (OTCQB: BETS) announced that it signed an agreement for a credit facility of $5 million dollars. The credit facility can be repaid in shares but only at the direction of the Company and only at prices approved by the Company and when directed by the Company at 90 percent of market value at the time of conversion. There is no fee to start the line, no open ended conversion feature and no "toxic" feature whereby the lender can continue to convert at lower and lower prices. The Company and the lender have estimated the average conversion price for the entire facility at 6.25 cents for the purposes of regulatory filings.
Shane O'Driscoll CEO, "We have no intention of using the full credit facility at this time as we believe we only need a small portion of the credit line (300-500k) to substantially increase the size of our business. The growth of our customers and revenue is the only reason to set this financing up.We do think that having the credit facility in place over the next 1-2 years will allow us to not only organically grow the business but to focus on strategic acquisitions of other sportbooks. As one of the top 100 online gaming sites we believe there are numerous players that would be attractive acquisition candidates by SeanieMac.
As part of the agreement the lender has already advanced over a100,000 dollars to the Company. The company is looking for additional short term financing with a payback window of 6 months that it can access while this credit facility is filed with the regulatory authorities. Our intention would be to use this credit facility tor repay those loans before the maturity date. These short term instruments will allow the company to begin accelerated marketing efforts. We will announce those financings when and if they are agreed to.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. GAAP, we have provided the following non-GAAP financial measures: turnover amounts and gross profit. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. However, neither of these measures is intended to be a substitute for those reported in accordance with U.S. GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.
Turnover amounts is a non-GAAP financial measure that reflects the total amount of bets placed in an accounting period. We consider turnover amounts to be an important measure for management to evaluate the performance of our business our revenue is directly related to the amount wagered. When evaluating our performance, you should consider turnover amounts as a supplement to other financial performance measures, including net loss and our other U.S. GAAP results.
Gross profit is a non-GAAP financial measure that reflects gross profit from all wages We consider gross profit to be an important measure for management to evaluate the performance of our business because gross profit as a percentage of turnover is an important measure of our odds and bet management. When evaluating our performance, you should consider gross profit as a percentage of amounts staked as a supplement to other financial performance measures, including net loss and our other U.S. GAAP results.
SeanieMac International, Ltd. is an Irish gaming company. It owns and operates www.SeanieMac.com, an online sports and casino wagering web-based platform serving gamblers directly under the brand name SeanieMac.com.
While the site offers wagering for many categories outside of sports, SeanieMac intends to capture the Irish market by initially focusing on the Gaelic Athletics Association (GAA) or Gaelic Games as well as Irish horse racing and soccer. The Company's mission is to provide a market-leading, user-friendly website for online gambling, including sports betting and casino gaming (traditional casino, live casino, poker, bingo and interactive skilled games). The Company does not market to U.S. residents and, hereby specifically discourages them from attempting to access its wagering services.
The Irish gambling industry generated approximately $23.7 billion in revenue in 2014, with $2.3 billion of that amount generated online. The Irish online gambling sector is projected to reach $4 billion in 2016.
As its national pastime, the Gaelic Games have long been popular in Ireland but they are gaining worldwide appeal, especially in areas with large communities of Irish heritage and their descendants, such as the U.S., Canada, Australia and the United Kingdom, where many communities have their own teams and clubs participating in the Gaelic Leagues locally and internationally. To learn more about the GAA, see www.gaa.ie.
Safe Harbor Statement
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of SeanieMac International, Ltd. and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements regarding our expectations regarding amounts staked and gross profits and our marketing initiatives. Such risks and uncertainties include, among other things, the uncertainty regarding consumer preferences, a decline in the popularity of our website and competition in the online gambling industry. SeanieMac assumes no obligation and does not intend to update these forward-looking statements.
A further description of risks and uncertainties can be found in SeanieMac International, Ltd.'s annual report on Form 10-K for the fiscal year ended December 31, 2013, its quarterly reports on Form 10-Q and its current reports on Form 8-K, each as filed with or furnished to the Securities and Exchange Commission.
At the Company
Chief Executive Officer
SOURCE SeanieMac International, Ltd.