Boomtown and National Gaming Terminate Previously Announced Merger.PARSIPPANY, N.J.--(BUSINESS WIRE)--April 3, 1995--Boomtown Inc. (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 :BMTN BMTN Bon à Moyen Terme Négociable (French: Mid-term negotiable bonds) ), National Gaming Corp. (NASDAQ:NAGC NAGC National Association for Gifted Children NAGC National Association of Government Communicators NAGC National Association of Government Contractors NAGC National Art Gallery of China NAGC North American Grappling Championships NAGC National American Glass Club, Ltd. ) and Hospitality Franchise Systems Inc. (NYSE NYSE See: New York Stock Exchange :HFS) today announced that their previously disclosed agreement of merger and related HFS financing have been terminated. Boomtown boom·town n. A town experiencing an economic or a population boom. and National Gaming remain as joint venturers in the Boomtown Biloxi (Mississippi) casino where HFS provides marketing services. Timothy J. Parrott, chairman and chief executive officer of Boomtown stated, "The views of Boomtown's shareholders were very clear in their desire to not access HFS capital at the proposed cost structure. While the transaction might have been completed if structured somewhat differently, we felt it best to terminate the proposed agreement to merge. However, as we move ahead with our plans for existing property expansions and investigate opportunities in new jurisdictions we will continue to explore strategic relationships that could be advantageous for our company and shareholders." Henry R. Silverman, chairman and chief executive officer of both National Gaming and HFS said, "A number of factors present when we began this process five months ago have changed. Boomtown did not receive a license in Iowa and decided to delay moving forward on a potential development project in Kansas City, which has changed its need for development capital. Furthermore, both National Gaming and HFS have been presented with a number of alternative opportunities that might have been precluded if this transaction were concluded. "We look forward to continuing our relationship with Boomtown at the Biloxi casino and other opportunities that may arise in the future," Silverman added. Boomtown Inc. is a gaming and entertainment company which currently operates casinos in Reno and Las Vegas, Nevada; Biloxi, Mississippi; and a riverboat riv·er·boat n. A boat suitable for use on a river. operation in Harvey, Louisiana near New Orleans, all featuring Boomtown's western theme. National Gaming is a newly-formed casino development company, spun-off from HFS in November 1994. Hospitality Franchise Systems Inc. is the largest hotel franchising company in the world. It is publicly held; its stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "HFS". The Company has more than 4,200 Days Inn, Howard Johnson, Park Inn, Ramada ra·ma·da n. Southwestern U.S. 1. a. An open or semienclosed shelter roofed with brush or branches, designed especially to provide shade. b. An open porch or breezeway. 2. , Super 8 and Villager Lodge franchised hotels with approximately 425,000 rooms in the Untied States, Canada, South America, Latin America, India and Europe. CONTACT: Boomtown Inc. Lee W. Sumrall, 702/345-8682 or National Gaming Corp. Stephen P. Holmes, 201/952-8423 |
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