Las Vegas From Entertainment Inc.
OTC Bulletin Board : LVFHF

Las Vegas From Entertainment Inc.

May 08, 2008 08:00 ET

Las Vegas and CY Foundation Group Look to Restructure Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - Las Vegas From Entertainment Inc. (the "Company") or ("LVFH") (TSX VENTURE:LVH)(OTCBB:LVFHF)(BERLIN:LVH)(FRANKFURT:LVH) reports that the non-binding letter of intent dated December 28, 2007 between the Company, Touchdown Capital Inc. (TSX VENTURE:TDW.P), CY Foundation Group Limited ("CYF") (HKSE:1182) and Special Opportunity Limited ("SPO") has been terminated, as a result of which Touchdown Capital Inc. will not be proceeding with its Qualifying Transaction that was announced on January 9, 2008. Touchdown Capital Inc. will have no further interest in the LVFH/CYF/SPO relationship and will resume its pursuit of another Qualifying Transaction.

Status of LVFH/CYF/SPO Relationship

The Company entered into a Software Licencing Agreement ("SLA") to provide CYF with software for the entire People's Republic of China ("PRC") by means of which CYF is obligated to pay LVFH a standard licensing royalty. The SLA has been terminated and the parties to the SLA are presently in the process of negotiating a revised SLA under amended terms and conditions.

In addition to the above SLA, the Company has entered into a Definitive Agreement dated December 28, 2007 ("2007 DA") and on March 4, 2008 the Company paid to CYF CDN$850,000 in consideration for the CYF Group's agreement to exclusively use the LVFH Software ("Exclusivity Rights") to operate both the popular "Fight the Landlord" ("Dou Di Zhu") and "13 Card Poker" ("Shi San Zhang") online games (the "Selected LVFH Software") in the Henan Province and in the city of Beijing including its suburbs (the "Designated Territory"). The CYF Group agreed to pay royalty payments to LVFH equal to the greater of (i) 10% of all tournament fees collected by the CYF Group less the tournament prizes paid to the players, and (ii) 1% of all tournament collection fees collected by the CYF Group without any deductions for prizes paid to the players, that are generated from the operations of the Selected LVFH Software and/or any other similar software which the CYF Group uses in the Designated Territory.

To acquire the Exclusivity Rights for its software in the Designated Territory for CDN$850,000, LVFH completed a private placement with SPO. In February 2008, the Company issued to SPO 5,000,000 units at CDN$0.17 per unit, each unit consisting of one common share of the Company and one warrant to buy one additional share of the Company at CDN$0.25 until February 19, 2009.

As the above-mentioned SLA and 2007 DA were related to the Touchdown Qualifying Transaction which is no longer taking place, all three parties, LVFH, CYF and SPO are exploring the possibilities of renegotiating and restructuring the SLA and the 2007 DA. While all parties are hopeful to renegotiate and restructure a mutually acceptable revised SLA and DA, there is no assurance whatsoever that this will take place. Regardless of the outcome of the renegotiation and restructuring of the revised SLA and DA, the terms of the 2007 DA between LVFH and the CYF Group will continue to survive unless terminated by mutual consent.

On behalf of the Board of Las Vegas From Entertainment Inc.

Jacob H. Kalpakian, President

This release does not constitute an offer for sale of securities in the United States.

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes", "plans", "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Las Vegas From Entertainment Inc.
    Jacob H. Kalpakian
    (604) 681-0204