RICHMOND, BC, Aug. 21, 2012 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] ("Great Canadian" or the "Company") announced today the final results of its offer to purchase up to 10 million of its common shares at a fixed purchase price of $10.00 per share under the Company's substantial issuer bid dated July 6, 2012 (the "Issuer Bid"). Shareholders had the opportunity under the terms of the Issuer Bid to tender shares until 5:00 pm (Toronto time) on August 15, 2012 (the "Expiration Date").
Great Canadian confirmed that all of the terms and conditions of the Issuer Bid have been complied with or waived and that a total of 19,153,421 common shares were validly tendered to the Issuer Bid.
In accordance with the terms of the Issuer Bid, the Company has accepted for purchase 10 million of the validly tendered common shares at a purchase price of $10.00 per common share for a total of $100,000,000. The shares being repurchased represent approximately 12.6% of the Company's common shares outstanding. After giving effect to the cancellation of the repurchased shares, there would have been 69,093,847 common shares outstanding on the Expiration Date.
Since the Issuer Bid was oversubscribed, shareholders who have validly tendered common shares will have approximately 52.2% of their tendered shares purchased by the Company, except for odd lot deposits that are not subject to proration. In addition, adjustments will be made to avoid the creation of fractional shares.
The depositary will promptly issue payment for the shares accepted for purchase in compliance with the terms of the Issuer Bid. Common shares not validly deposited under the Issuer Bid or not taken up because of pro ration will be returned to the applicable shareholders as promptly as possible.
As of the Expiration Date, the Company estimates that the paid-up capital per common share for purposes of the Income Tax Act (Canada) (the "Tax Act") was approximately $3.79.
This press release is for information purposes only and is not an offer to buy or a solicitation of an offer to sell any securities of the Company. The Toronto Stock Exchange has neither approved nor disapproved the form or content of this press release.
ABOUT GREAT CANADIAN GAMING CORPORATION
Great Canadian Gaming Corporation is a multi-jurisdictional gaming, entertainment and hospitality operator with 17 gaming facilities, which include ten casinos, four horse racetrack casinos, three community gaming centres, and a Four Diamond hotel resort, located in British Columbia, Ontario, Nova Scotia and Washington State. As of June 30, 2012, the Company had approximately 4,100 employees in Canada and 600 in Washington State. Further information is available on the Company's website, www.gcgaming.com.
This news release contains certain "forward-looking information" or statements within the meaning of applicable securities legislation. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including statements related to the Company's normal course issuer bid and statements that address expectations, estimates or projections about the future. Such forward-looking information is based on certain assumptions made by the Company and is not a guarantee of future performance and may involve a number of risks and uncertainties. Although forward-looking information is based on information and assumptions that the Company believes are current, reasonable and complete, they are subject to a number of factors that could cause actual results to vary materially from those expressed or implied by such forward-looking information. Such factors may include, but are not limited to: terms of operational service agreements with lottery corporations; changes to gaming laws that may impact our operational service agreements; pending, proposed or unanticipated regulatory or policy changes; unanticipated fines, sanctions and suspensions imposed on the Company by its regulators; impact of global liquidity and credit availability; adverse tourism trends and further decreases in levels of travel, leisure and consumer spending; competition from established competitors and new entrants in the gaming business; dependence on key personnel; the risk that systems, procedures and controls may not be adequate to meet regulatory requirements or to support current and expanding operations; potential undisclosed liabilities and capital expenditures associated with acquisitions; negative connotations linked to the gaming industry; First Nations claims with respect to some land on which we conduct our operations; future or current legal proceedings; construction disruptions; financial covenants associated with credit facilities and long-term debt; credit, liquidity and market risks associated with our financial instruments; interest and exchange rate fluctuations; non-realization of cost reductions and synergies; demand for new products and services; fluctuations in operating results; and economic uncertainty and financial market volatility. These factors and other risks and uncertainties are discussed in the Company's continuous disclosure documents filed with the Canadian securities regulatory authorities from time to time, including in the "Risk Factors" section of the Company's Annual Information Form for fiscal 2011, and as identified in the Company's disclosure record on SEDAR at www.sedar.com. The forward-looking information in documents incorporated by reference speak only as of the date of those documents. Readers are cautioned not to place undue reliance on the forward-looking information, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. The Company undertakes no obligation to publicly revise forward-looking information to reflect subsequent events or circumstances except as required by law. The forward-looking information contained herein is made as of the date hereof and is expressly qualified in its entirety by cautionary statements in this news release.
ON BEHALF OF
GREAT CANADIAN GAMING CORPORATION
"Original Signed By Rod N. Baker"
Rod N. Baker
President and Chief Executive Officer
SOURCE: Great Canadian Gaming Corporation
For further information:
For investor enquiries:
Ms. Tanya Ruskowski
Executive Assistant to the President and Chief Executive Officer and the Chief Financial Officer
For media enquiries:
Mr. Howard Blank
Vice-President, Communications, Entertainment & Responsible Gaming