Proceeds enable full funding of Tonkawa 600 machine placement agreement
MILL VALLEY, CA, April 30, 2015 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) ("Poydras," "PGFC," or the "Company") has completed its previously announced non-brokered private placement (see News Release dated April 14, 2014), effective April 29, 2015. Poydras issued 66,073,284 common shares at C$0.07 per share, raising C$4.6 million in gross proceeds, a 3% increase over the original financing target of C$4.5 million.
All shares issued in connection with the private placement are subject to a statutory four-month hold from the date of issuance. Net proceeds from the private placement will be used to fund the Company's 600 machine placement with the Tonkawa Tribe of Indians of Oklahoma (see news release dated January 13, 2015).
As announced on April 14, 2015, Poydras initiated equity financings whereby it will raise in aggregate up to C$11.5 million. With closing of the private placement, the Company expects to complete the financings by raising approximately C$7.0 million by way of prospectus offering. Poydras has engaged an agent for the prospectus offering, and the prospectus offering is anticipated to close in the next 30-45 days. The prospectus offering comprises subscription receipts priced at C$0.07 which will be convertible into common shares upon the satisfaction of certain conditions including satisfaction of the conditions precedent to the acquisition of the Integrity Companies. The net proceeds from the prospectus offering will be used to fulfill the Company's obligations for the cash portion of the purchase price for its acquisition of the Integrity Companies (see news release dated September 29, 2014), as well as for general working capital purposes. The prospectus offering is subject to TSX-V approval.
"We are very excited to close this oversubscribed private placement financing as it provides us with the capital to fully fund the placement of 600 machines with the Tonkawa Tribe of Indians of Oklahoma, adding approximately USD $6 million in estimated annual revenue for the Company," said Peter Macy, CEO of Poydras. "The financing gives Poydras financial flexibility to aggressively pursue our growth strategy."
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 six 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 forward-looking 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 forward-looking 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 FORWARD-LOOKING 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: [email protected] or Peter Macy, CEO, Poydras Gaming Finance Corp., T: (604) 683-8393, E: [email protected]