Alpha to Exchange Jubilation Vessel.NEW YORK--(BUSINESS WIRE)--Dec. 14, 1998--Alpha Hospitality Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALHY ALHY Alpha Hospitality Corporation (stock symbol; previously ALH) ) (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). :ALH ALH Advanced Light Helicopter ALH Amplitude of Lateral Head (Displacement) ALH Alpha Hospitality Corporation (former stock symbol; now ALHY) ALH Advanced Liquid Hydrogen ) (the "Company") announced today that it has entered into a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with Equity Services Inc. ("EQS") to exchange the company's dormant Jubilation casino vessel, berthed in Mobile, Alabama, for the ownership of "Krawdaddy's," an operating truck stop with a restaurant and video poker room in Port Allen, Louisiana The small city of Port Allen is the parish seat and governmental center of West Baton Rouge Parish, in the US State of Louisiana. Port Allen is located between Interstate 10 and US Highway 190 on the West bank of the Mississippi River. . The proposed transaction would involve an exchange of the casino vessel and its equipment for all the assets of the Krawdaddy's operation, which includes the real estate, fixtures, licenses and permits and a 49% interest in the video poker machines. The company will assume $3.3 million of existing debt and will issue 100,000 shares of common stock to EQS upon the closing. The closing of this transaction is subject to certain conditions, which include Alpha's completion of due diligence, the execution of definitive agreements and the final approval of Alpha's Board of Directors. An Alpha spokesman said this transaction will be an extremely positive event for the company, "In essence, we are exchanging an asset that has been idle since the company closed its Lakeshore, Mississippi, operation over two years ago for a profitable, operating asset with long-term potential." The company has been exploring business opportunities since the sale of the majority interest in its primary operating asset, the Bayou Caddy's Jubilee Casino in Greenville, Mississippi in March of this year. The company recently announced that it had entered into letters of intent with Sunstate Manufactured Homes of Georgia Inc. and South Georgia Frames Unlimited Inc., manufacturers and retailers of single family housing. The company plans to seek other opportunities in the gaming area, as well as opportunities in the manufactured housing industry. To the extent the content of this press release includes forward-looking statements, they involve risks and uncertainties that are described from time to time in the company's reports filed with the Securities and Exchange Commission and the risks inherent in the manufactured housing and gaming industries. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1994, and as such, speak only as of the date made. |
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