Respected Hong Kong IT company, Elixir Group Limited, has agreed upon a corporate alliance with VendingData Corporation, which financial analysts say will likely result in a large merger staying under the Elixir Group name. VendingData Corp. is well known for their engineering applications, which coupled with the innovative research and manufacturing assets of Elixir, promises to be an alliance conducive to both companies operations. Pending approvals by shareholders and lawmakers, Elixir will be issued one million shares valued at $2.65 million and 16 million warrants with exercise prices up to $5.50 per share, resulting in a total sum exceeding $50 million.

There are several provisions in the alliance, some of which would happen later down the road. In addition to the aforementioned equity investment, there will be exclusive discussions for VendingData to also acquire equity in Elixir, distribution rights lasting up to twenty years on VendingData's Dolphin high frequency casino gaming chip and other computer technologies, a pending licensing grant for VendingData to change their company name to Elixir Gaming Technologies Incorporated, and an engineering alliance which would include both companies manufacturing centers.

The latter component of these provisions would lead to an integration of Elixir's recently developed casino gaming developmental research center (located in Macau) with the hi-tech engineering center operated by VendingData in Zhuhai. Essentially this deal will amount to VendingData engineering and manufacturing the fruit of Elixir's research aimed at the Asian casino and gaming industry. This is precisely where the alliance will have its greatest impact, for both companies are significantly versed in their respective fields. And with the Asian casino gambling industry taking off as it has this past year, the anticipated outcome of the alliance has brought nothing but encouragement from shareholders and investors.

Both companies are already in talks about integrating their technologies and communicating on product development. Likewise, both companies are working with their respective investment banks to help sort out the financial details of the alliance. By January 31, 2007, Elixir will nominate a member to the VendingData Board (assuming all share acquisitions are said and done), which is to be followed by discussions regarding VendingData's acquisition of a minority interest in Elixir later in the year.