Global Pari-Mutuel Services, Inc. Announces Completion of a Strategic Investment Led by BERMASE LLC

CHANDLER, Ariz., Sept. 17 /PRNewswire-FirstCall/ -- Global Pari-Mutuel Services, Inc. (Pink Sheets: GPRM)  (the "Company"), a pari-mutuel gaming and wagering services provider, announced today that it completed a $700,000 financing led by BERMASE LLC, a private investment company.

Pursuant to the terms of the financing, the Company issued and sold to BERMASE (i) a 9% senior secured convertible promissory note due September 15, 2011, $400,000 principal amount; (ii) warrants to purchase 7,000,000 shares of the Company's common stock at exercise prices ranging incrementally from $0.50 to $3.00; and (iii) 1,200,000 shares of the Company's common stock, at a purchase price of $0.20 per share.  The obligations under the note issued to BERMASE rank senior to all current and future indebtedness of the Company and are secured by a continuing security interest in all of the Company's assets and are fully and unconditionally guaranteed on a joint and several senior basis by each subsidiary of the Company.  The Company also issued and sold an aggregate of 300,000 shares to other investors for additional aggregate consideration of $60,000.  

In connection with the investment by BERMASE, the Company also increased the size of its Board of Directors from four to seven members and caused (i) Robert A. Berman, (ii) Joel A. Asen and (iii) Michael M. Michigami to be appointed as directors upon BERMASE's nomination.  Mr. Berman has held positions of chairman and chief executive officer of several public companies, including Empire Resorts, Inc., a gaming company and Executone Information Systems, Inc., a technology company, and presently serves as Chairman of the Board of Upper Hudson Holdings, LLC, which provides insurance and financial products to the middle market through its subsidiaries.  Mr. Asen has served as a managing director of PLASE Capital Group, LP, an affiliate of Apollo Advisors, L.P., since June 2003 and has served as the president of Asen Advisory, Inc. since April 1992, which provides strategic and financial advisory services.  Mr. Asen has also served as a director, senior officer or manager of numerous public and private companies, including General Electric Company and GE Capital Corporation.  Michael M. Michigami has served as Chairman and Chief Executive Officer of LegiTime Technologies, Inc., a company engaged in the development of SMS related technology, since October 2008.  Mr. Michigami is a former Chief Executive Officer of three public companies, including Digital Microwave Corporation, Datapoint Corporation, and Electronic Associates, Inc. and has also served as a director and in senior management positions at numerous other public and private companies. Following the closing, the Company also retained Olshan Grundman Frome Rosenzweig & Wolosky LLP, New York, New York, as its legal counsel.

The Company and BERMASE also entered into long term collaboration agreements on September 15, 2010 relating to the development of new proprietary technology relating to the Company's pari-mutuel trading hub, which the Company and BERMASE anticipate launching in the fourth quarter of 2010.

About Global Pari-Mutuel Services, Inc.

The Company is focused on deploying technology and providing services designed to facilitate pari-mutuel wagering over the Internet and through international call-centers and physical off-track-betting (OTBs) facilities.

SOURCE Global Pari-Mutuel Services, Inc.