Innovative Gaming sells assets

RENO -- Game maker Innovative Gaming Corp. of America said it agreed to sell all of its gaming assets to Xertain Inc., a privately held Las Vegas gaming technology company.

The agreement calls for Xertain to pay about $4 million in cash and notes and to assume about $1 million of Innovative Gaming debt. The price will be adjusted just before closing to reflect account-receivable balances and unspecified contract matters.

The sale of the gaming assets is a condition of the previously announced merger of Innovative Gaming and nMortgage.com, a majority-owned mortgage-banking subsidiary of Equitex Inc.

The merger pact calls for Innovative Gaming's existing shareholders to get a 25 percent stake of the new company, which offers retail and wholesale mortgage financing in 25 states.

The agreements are subject to approval by Innovative Gaming shareholders and gaming regulators.

"Xertain is an ideal buyer of our gaming assets, since they intend to keep the business intact with minimal disruption to our existing clientele," Edward Stevenson, Innovative Gaming chairman, said in a statement.

"Innovative Gaming's inventory of games, existing customer base, intellectual properties and its experienced professional staff, which will be melded into Xertain, are complimentary to our company's existing assets and management team," Xertain Chief Executive Roland Thomas said.

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