Empire Resorts, Inc.’s Largest Stockholder Exercises Basic Subscription Rights in Rights Offering
14 May 2013 - 4:23AM
Business Wire
Empire Resorts, Inc. (NASDAQ-GM:NYNY) announced that Kien Huat
Realty III Limited (“Kien Huat”), the Company’s largest
stockholder, exercised the basic subscription rights it was granted
in the Company’s ongoing rights offering on Friday, May 10, 2013.
Such exercise generated approximately $6.9 million of proceeds to
the Company.
In accordance with a standby purchase agreement executed by the
Company and Kien Huat in relation to the rights offering, Kien Huat
has further agreed it 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 prior to the commencement of the rights offering. The
Company will pay Kien Huat a commitment fee of $40,000 for the
shares purchased by Kien Huat in excess of its basic subscription
rights pursuant to the standby purchase agreement. In addition, the
Company will reimburse Kien Huat for its expenses related to the
standby purchase agreement in an amount not to exceed $40,000. The
consummation of the transactions contemplated by the standby
purchase agreement is subject to customary closing conditions.
The Company distributed 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. Holders of rights may exercise
their subscription rights to purchase additional shares of our
common stock at the subscription price per share until prior to
5:00 p.m., New York City time, on May 30, 2013. Subscription rights
not exercised by such time and date will expire and have no
value.
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) 322-2885.
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
final prospectus relating to the rights offering, dated April 30,
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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