9 Dec. 98
Shares issued 9,630,501
Dec 8 close $1.30
N E W S R E L E A S E
Gateway Technology acquired; private placement;
name change
Mr. Darold Parken reports
Chartwell Ventures has acquired all of the issued shares of Gateway Technology Inc.
GTI is a private Delaware company with offices at Laguna Hills, California. GTI operates as a wholly-owned subsidiary of Chartwell. GTI specializes in Internet and intranet based computing and e-commerce with its current business focus in the areas of video communications, e-commerce and internet/intranet gaming software development. This acquisition provides Chartwell's entry into the rapidly expanding area of e-commerce and web development.
The GTI shares were exchanged for 1,000,000 shares of Chartwell. All of the Chartwell shares are subject to the terms of a performance escrow. The performance escrow provides that the Chartwell shares will be released from escrow on the basis of one share for each $1.00 of cash flow generated by GTI from and after the effective date of the acquisition.
The president of GTI, Steven W. Latham, has also joined the board of Chartwell. Mr Latham was formerly a product manager with Corel Corp. He was instrumental in the development of CorelVIDEO, and GTI's Casino Casino internet gaming software. David B. Bailey is GTI's vice-president, who together with Steven Latham, is responsible for the design, implementation and maintenance of GTI's software systems. Richard V. Latham is GTI's vice-president of marketing responsible for all national and international marketing efforts. Each of these three senior executives of GTI have entered into employment contracts with GTI and have each been granted options to purchase 116,666 Chartwell shares at $1.00 per share. Mr. Bailey and Richard Latham have extensive internet commerce experience and, together with Steven Latham, bring a wealth of technical and interact commerce and marketing experience to Chartwell. GTI has developed considerable expertise in the area of videoconferencing.
CorelVIDEO is GTI's video conferencing product and is a LAN and WAN based communication solution that incorporates video, voice and data. As the largest reseller of this videoconferencing product, GTI also installs, maintains and provides training for the end users of the equipment. GTI negotiated an exclusive contract with Corel Corp. to develop the GTI Casino Casino gaming and electronic commerce software package.
This software allows users to play casino games in a virtual casino with real money. The software can run on the internet or in an intranet environment. Casino Casino is Java based software which requires no downloading and thu provides instant access by its users.
As part of the solution, GTI has also developed CyberBanx, an online electronic banking interface that handles direct bank transactions and electronic cash.
GTI provides its software on a non-exclusive licence and royalty basis to on-line business operators. GTI's technical lead in the mass of videoconferencing and superior proprietary internet gaming software position the company to take advantage of the projected exponential market growth in both of these areas.
In conjunction with the acquisition of GTI, Chartwell has completed a private placement of $500,000 in 10 per cent convertible debentures and 250,000 warrants exercisable at $1.00 per share for two years. The proceeds of the private placement will be used for working capital purposes. To reflect the change in the nature of Chartwell's business.
Chartwell has changed its name to Chartwell Technology Inc. Chartwell's shares will commence trading under the new name and stock exchange symbol once required documentation has been filed with the Alberta Stock Exchange.
For further information, please contact:
Darold H. Parken
President
877-261-6619 or 403-261-6619
dhp@chartwelltechnology.comDavid Bajwa
Investor Relations
877-669-4180 or 604-669-4180
info@chartwelltechnology.comFor more information about Chartwell Technology Inc. please see www.chartwelltechnology.com/Stock.html