Poydras Gaming Finance Corp. Announces CAD $11.5MM Equity Financing

Proceeds enable completion of Integrity and Tonkawa transactions, adding approximately USD $15 million in estimated annual revenue for the Company

MILL VALLEY, CA, April 14, 2015 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) ("Poydras" or the "Company") has entered into an equity financing whereby Poydras will raise up to CAD $11.5 million through a combination of private placement financing and short form prospectus offering.  The common shares of the Company will be issued at CAD $0.07 per share, and are subject to a statutory four-month hold from the date of issuance.  Funds will be used to fund the Company's 600 machine placement with Tonkawa Tribe of Indians of Oklahoma (see news release dated January 13, 2015) and the cash portion of the purchase price for its acquisition of the Integrity Companies (see news releases dated September 29, 2014 and March 2, 2015), as well as for general working capital purposes.

Poydras will raise up to CAD $4.5 million through the private placement offering, from a combination of US and Canadian investors.  As of April 13, 2015, equity subscription agreements have been executed for CAD $2.0 million.  Closing of the private placement is expected on or around April 17, 2015.  Poydras will raise the remaining CAD $7.0 million through a short form prospectus offering, which is expected to close prior to May 15, 2015.  The Company will also enter into a one year fiscal advisory agreement with GC-Global Capital Corp. ("GC-Global") whereby Poydras will receive strategic financial advisory services in exchange for a monthly fee of CAD $20,000.  There will be no change of control as a result of the financing.

"We are excited to announce this financing as it provides us with the capital to fund both the placement of 600 machines with the Tonkawa Tribe of Indians of Oklahoma and the acquisition of the Integrity Companies, adding approximately USD $15 million in estimated annual revenue for the Company," said Peter Macy, CEO of Poydras.  "This financing will give Poydras the financial flexibility to aggressively pursue our growth strategy."

The financing is subject to TSX Venture Exchange approval. 

Tonkawa and Integrity Transactions:
Poydras management also expects to close its previously announced acquisition of the Integrity Companies within the next 30 days subject to certain conditions including completion of an audit of the Integrity Companies, the approval of the TSX Venture Exchange and the consent of applicable gaming regulatory authorities. 

Under the terms of an agreement with the Tonkawa Tribe of Indians of Oklahoma, Poydras and Integrity will provide 600 Class III gaming machines under a 6-year and 11-month contract which is expected to generate approximately USD $6 million in annual revenue for Poydras.  Under the terms of the agreement, Poydras and Integrity will take over floor space and games currently leased directly by a number of machine vendors including, IGT, Scientific Games (WMS and Bally), Aristocrat, Konami, Ainsworth and Aruze.  Poydras announced its initial acquisition of 105 revenue generating games on March 2, 2015 and expects to have completed purchase and financing agreements for substantially all of the remaining 495 Class III gaming machines by the end of April.

Upon closing of the acquisition of the Integrity Companies and the placement of machines with the Tonkawa Tribe of Indians of Oklahoma, Poydras will have over 2,500 machines under participation leases with 26 casinos.

For additional information please see the SEDAR website at www.sedar.com.

About Poydras Gaming Finance Corp.:
Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States.  It owns and finances slot machines including long-term lease contracts across four casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California.  Additional information about the Company can be found on the SEDAR website at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this news release is considered forward-looking within the meaning of certain securities laws and is subject to important risks, uncertainties and assumptions. This forwardlooking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forwardlooking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARDLOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

SOURCE Poydras Gaming Finance Corp.

For further information: Robert Kelly, Investor Relations, TMX Equicom, T: 416.815.0700 ext. 253. E: rkelly@tmxequicom.com or Peter Macy, CEO, Poydras Gaming Finance Corp., T: (604) 683-8393, E: info@poydrasgaming.com

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