Gamehost Income Fund (TSXV: GH.UN)
RED DEER, AB, Feb. 12 /CNW/ - Gamehost Income Fund has declared a cash
distribution for the month of February 2008 of $0.20 per trust unit. The
distribution will be paid on March 14, 2008 to unit holders of record on
February 29, 2008. The ex-distribution date is February 27, 2008.
On December 3, 2007, the Fund announced that Calgary West Hospitality Inc
(CWH) a company controlled by Darcy and David Will had extended an opportunity
to participate in a new joint venture to purchase the new Stampede Casino
(Stampede Joint Venture). Mr. James McPherson, on behalf of the Committee of
Independent Trustees announces that they have approved the transaction,
whereby the Fund will take up a 20% participation in the Stampede Joint
Venture. Mr. McPherson stated that "the Fund's primary objective is to ensure
stability in cash distribution and further growth. The Committee felt that a
20% investment was appropriate so as to allow the Fund to continue present
level cash distributions.
The new casino facility encompasses approximately 100,000 sq feet with a
300 stall underground parkade. Access to additional parking is assured through
a land lease agreement signed in conjunction with the purchase. It is a state
of the art, energy efficient building which will include three food
establishments, several beverage outlets and a 400 seat live entertainment
showroom. The gaming floor will host 41 table games. The table games will be
arranged in two pits in addition to a 10 table private poker room and private
high limit area. Initially, the facility will house 600 Vegas style slot
The Fund is also pleased to announce that Calgary West Hospitality (CWH)
has received approval from the Alberta Gaming & Liquor Commission for the
purchase of the new Stampede Casino. The purchase includes the now under
construction casino in its entirety. The current Stampede Casino location will
be closed permanently when the new casino opens for business in June 2008. CWH
will own and operate the new casino building and business and has entered into
a land lease with the Calgary Stampede and Exhibition. Terms of the lease will
include base rent and percentage rent for a period of 60 years with a right of
The Fund's equity requirement for the Joint Venture is approximately
$6.0 million. The Fund will convert its existing $9.0 million revolving term
facility to a conventional mortgage, secured by the Fund's Grande Prairie
assets. A new $6.0 million revolving term facility has been negotiated for the
equity required. Payments of interest only will be required on any outstanding
balance on the revolving term facility.
CWH advises that an agreement has been reached with a Canadian Chartered
bank to provide the new mortgage facility for the new Stampede Casino, along
with a revolving loan.
The Fund is an unincorporated open-ended limited purpose trust
established under the laws of the Province of Alberta. The Fund's activities
are currently confined to the Province of Alberta, Canada. Operations of the
Fund include the Boomtown Casino in Ft. McMurray, the Great Northern Casino,
Service Plus Inns & Suites and a strip mall all located in Grande Prairie. The
Fund is also a 40% joint venture partner in Deerfoot Inn & Casino Inc. in
Calgary. Most recently, the Fund has announced it will become a 20% joint
venture partner in the new Stampede Casino in Calgary, Alberta scheduled to
open in June 2008.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Complete disclosure of the Fund can be found on SEDAR at www.sedar.com.
Additional information on the Fund can be found on the Fund's website at
For further information:
For further information: Investor Relations, P (403) 346-4545, F (403)
340-0683, E email@example.com