Receives Tonkawa Gaming License and takes over initial tranche of machines
VANCOUVER, March 2, 2015 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) ("Poydras" or the "Company") is pleased to announce that it has received its gaming license from the Tonkawa Tribe of Oklahoma and acquired 105 gaming (slot) machines effective March 1, 2015, all of which are currently installed and revenue producing. This initial machine placement is part of the long-term placement agreement between Poydras and Integrity Companies with the Tonkawa Tribe of Indians of Oklahoma as announced on January 13, 2015. Under the terms of the agreement, Poydras and Integrity will provide 600 Class III gaming machines under a 6-year and 11-month contract which is expected to generate approximately $6 million in annual revenue for Poydras. The Company is financing its machine purchases through a combination of vendor financing and cash on hand and intends to complete purchase and financing agreements for the remaining 495 Class III gaming machines over the next 30 days. Approximately 200 of those 495 machines will also be currently installed with immediate revenue generation for Poydras upon purchase. The balance of the machines will be delivered and installed over the next 45 - 90 days.
"We are pleased to have been able to start generating revenue within just a few days of receiving our license," said Peter Macy, CEO of Poydras. "We are excited about completing our roll-out over the next few months and building our long-term partnership with the Tonkawa Tribe of Oklahoma."
Poydras management also expects to close its previously announced acquisition of the Integrity Companies (see News Release dated September 29, 2014) within the next 30-45 days subject to certain conditions including, completion of an IFRS audit of the Integrity Companies, the approval of the TSX Venture Exchange and the consent of applicable gaming regulatory authorities. On a combined basis, with this placement agreement, Poydras and Integrity will have over 2,500 machines under participation leases with 26 casinos.
Under the terms of the Tonkawa machine placement 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.
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 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: Peter Macy, CEO, Poydras Gaming Finance Corp., Phone: (604) 683-8393, Email: [email protected]