Empire Resorts Files Registration Statement for Planned Rights Offering
05 April 2013 - 7:45AM
Business Wire
Empire Resorts, Inc. (NASDAQ-GM:NYNY) today announced that it
plans to commence a rights offering of common stock to the holders
of its common stock and Series B Preferred Stock, which, if fully
subscribed, will produce gross proceeds to the Company of
approximately $11.4 million. The Company expects to utilize the
estimated net proceeds of the rights offering of approximately
$11.1 million to fund certain costs of its development project at
the site of the former Concord Resort in Sullivan County, New York,
which costs may include permitting, infrastructure and shared
master planning costs and expenses, and for general corporate
working capital purposes.
The Company has also reached an agreement in principle with Kien
Huat Realty III Limited (“Kien Huat”), the Company’s largest
stockholder, for the execution of a standby purchase agreement,
whereby Kien Huat would exercise the subscription rights it
receives pursuant to the rights offering within ten days of grant.
In addition, Kien Huat would exercise all rights not otherwise
exercised by the other holders in the rights offering to acquire up
to one share less than 20% of the Company’s issued and outstanding
common stock on the date of such purchase. However, such agreement
in principal is not binding and Kien Huat is not legally obligated
to exercise such rights until a standby purchase agreement is
executed by the parties.
The Company filed on April 3, 2013 with the Securities and
Exchange Commission a registration statement covering the
transaction and the distribution of rights and commencement of the
rights offering is expected to occur promptly following the
effectiveness of that registration statement.
The Company plans to distribute to its common stock holders and
Series B Preferred Stock holders one non-transferable right to
purchase one share of common stock at a subscription price of
$1.8901 per share for each five shares of common stock owned, or
into which their Series B Preferred Stock is convertible, on April
8, 2013, the record date for the offering. In addition to being
able to purchase their pro rata portion of the shares offered based
on their ownership as of April 8, 2013, stockholders may
oversubscribe for additional shares of common stock.
Registration Statement
The Company has filed a registration statement (including a
prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the
Company has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free
by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the Company or our information agent, MacKenzie
Partners, Inc., will arrange to send you the prospectus if you
request it by calling toll-free (800) 322-2285.
Cautionary Statement Regarding Forward Looking
Information
Statements in this press release 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 1995, 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
Registration Statement on Form S-1, filed with the Securities and
Exchange Commission on April 3, 2013.
About Empire
Empire Resorts, Inc. owns and operates, through
its subsidiary Monticello Raceway Management, Inc., the Monticello
Casino and Raceway, a harness racing track and casino located in
Monticello, New York, and is 90 miles from midtown Manhattan.
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