SenSen Networks signs SenGame 3.0 distribution deal with Japanese casino supplier
Smart cities solution provider SenSen Networks (ASX: SNS) has executed a five-year exclusive distribution agreement with Angel Japan Co Ltd for rights to its SenGAME 3.0 casino gaming software.
Operating as Angel Playing Cards, the group is engaged in the sale of high-quality casino equipment including cards and chips as well as related devices for gaming purposes in casinos worldwide.
Under the terms of the distribution agreement, SenSen will conduct a $3.3 million private placement to Angel for a total of 22 million shares at $0.15 per share, or approximately 4.99% SenSen’s total shares on issue.
The share price reflects a premium of approximately 68% on the closing price of SenSen shares at 4 December.
Funds raised will be used to further develop SenGAME 3.0 and for general working capital.
Angel will make a minimum $7.3 million advance payment during the initial five-year term, and an option exists for a three-year extension.
SenGAME 3.0 is proprietary SenSen software installed on casino gaming tables to process video images in real time and calculate table occupancy, game start and finish times and hands dealt per hour, as well as the number, type and value of all bets placed.
It allows casinos to leverage the power of artificial intelligence and deep machine learning to analyse specific game play scenarios and make real-time, highly-accurate assessments for business intelligence purposes.
During the initial period of the distribution agreement with Angel, SenSen will sell SenGAME 3.0 for a fixed monthly “per table” price.
Angel will be responsible for gaining and maintaining distributor approvals or licences from relevant agencies, including gaming authorities in each jurisdiction.
SenSen chief executive officer Subhash Challa said the distribution agreement was a “transformational deal” for the company.
“Angel is a world leader in supplying equipment to the world’s leading casinos and has an unparalleled market reach,” he said.
“This extremely powerful distribution platform will see SenGAME 3.0 rapidly deployed on gaming tables globally… we look forward to working closely with Angel to dominate the market with our combined offering.”
At midday, shares in SenSen Networks were up 34.83% to $0.120.