TORONTO, ONTARIO -- (Marketwire) -- 10/13/09 -- Gamecorp Ltd. (CNSX: GGG)(OTCBB: GAIMF), ("Company" or "Gamecorp") announced today that it has entered into an agreement with Function Mobile Inc. ("FMI") pursuant to which it has acquired the exclusive rights to participate in FMI opportunities worldwide in exchange for a perpetual royalty to be paid by Gamecorp to FMI (the "Agreement"). FMI is a mobile technology and solutions provider operating from Toronto. FMI has developed a short message service (SMS) software platform and has assembled business relationships with Latin American marketing firms, telecommunications providers, and government agencies.
Pursuant to the Agreement, Gamecorp will provide seed financing to the projects and will obtain an ownership interest in the project. The royalty payable to FMI will be 15% of Gamecorp's share of cash distributions payable only after Gamecorp has recovered its cash investment in the project. Gamecorp has agreed to reimburse FMI certain expenses, up to a maximum of $20,000, which it has recently incurred on new projects over the next 120 days.
As part of the Agreement, Gamecorp entered into a 2 year management services agreement for the services of Marc Askenasi, President of FMI. Marc will be paid a base fee which will rise based on the performance of projects. Options, subject to Board approval, will be issued to Mr. Askenasi and he will receive an annual bonus of 2.5% of cash distributions made to Gamecorp, capped at $24,000 per annum and payable only after Gamecorp's recovery of its full investment.
The first proposed project is in Panama. Gamecorp will become the joint venture partner and the joint venture intends to obtain a government sweepstake license in Panama.
Gamecorp Ltd., headquartered in Toronto, Ontario is a publicly traded company listed on the Canadian National Stock Exchange. For more information please call (416) 477-5656 or refer to www.sedar.com.
The management of the company, who take full responsibility for its content, prepared this press release. This press release contains forward-looking statements relating to future events and results that are based on Gamecorp's current expectations. These statements involve risks and uncertainties including, without limitation, Gamecorp's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
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