Empire Resorts Announces Conclusion of Rights Offering
24 May 2011 - 11:00PM
Business Wire
Empire Resorts, Inc. (NASDAQ: NYNY) (“Empire” or the “Company”)
reported the completion of its previously announced rights
offering, which expired on Friday, May 20, 2011. The Company sold
19,886,776 shares of its common stock, representing 50.2% of the
shares offered in the rights offering, at the $0.8837 per share
offering price, for aggregate gross proceeds of approximately $17.6
million. As a result of the rights offering, the total number of
shares of the Company’s common stock outstanding is 89,592,259.
Kien Huat Realty III Limited (“Kien Huat”), the Company’s largest
stockholder, subscribed for 19,826,382 shares in satisfaction of
its commitment to participate in the rights offering. After giving
effect to the rights offering, Kien Huat now owns approximately 61%
of the outstanding shares of the Company’s common stock.
As payment for the exercise of its rights, Kien Huat authorized
the reduction of $17,520,574 from the unpaid principal and accrued
interest outstanding under the bridge loan agreement, dated
November 17, 2010, between Empire and Kien Huat. The remaining
unpaid principal amount of the loan from Kien Huat, which will
continue to bear interest at a rate of 5% per annum, will mature in
May 2013, unless earlier accelerated, and will be convertible into
shares of common stock at a conversion price of $0.8837 per share,
the exercise price of the rights issued in the rights offering.
Emanuel Pearlman, the Chairman of Empire’s Board of Directors,
stated that, “The completion of our rights offering is an important
milestone in our plan to significantly reduce our debt and improve
the Company’s cash flow. The continued support of our major
shareholder has been instrumental in this process.” Joseph D’Amato,
Empire’s Chief Executive Officer and a member of its Board of
Directors, added, “The completion of the rights offering improves
our liquidity and strengthens our balance sheet by reducing our
debt to approximately $17.5 million and extending its maturity for
two years.”
As a result of the completion of the rights offering, Empire
believes it has regained compliance with the NASDAQ continued
listing requirements for stockholders’ equity. The Company
continues to consider actions that it may take to regain compliance
with the minimum bid price requirement for continued listing on the
Nasdaq Global Market.
About Empire Resorts
Empire Resorts owns and operates the Monticello Casino &
Raceway, a harness racing track and casino located in Monticello,
New York, and is 90 miles from midtown Manhattan. For additional
information, please visit www.empireresorts.com.
Cautionary Statement Regarding Forward Looking
Information
Statements in this press release regarding the company’s
business that are not historical facts are “forward-looking
statements” that may involve material risks and uncertainties. The
company wishes to caution readers not to place undue reliance on
such forward-looking statements, which statements are made pursuant
to the Private Securities Litigation Reform Act of 1994, and as
such, speak only as of the date made. For a full discussion of
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see “Risk
Factors” in the company’s Annual Report on Form 10-K for the most
recently ended fiscal year and in other filings with the Securities
and Exchange Commission from time to time.
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