Crown to Exit Gaming Industry.DALLAS--(BUSINESS WIRE)--Nov. 12, 1996--Crown Casino Corporation (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 :DICE), today announced that the Company's Board of Directors, after discussions with its investment bankers Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. , Jefferies and Company, has reached a decision to exit the casino gaming industry and seek an acquisition or merger in another field which has yet to be determined. As a result of the Board's decision, the Company reported that it would not complete the planned acquisition of the Mississippi Belle II riverboat casino A Riverboat casino is a type of casino unique to several areas of the United States which use a riverboat as a casino. Several states authorized this type of casino to limit the areas where casinos could be constructed. located in Clinton, Iowa Clinton is a city in Clinton County, Iowa, United States. The population was 27,772 at the 2000 census and the 2006 estimate was 27,042. It is the county seat of Clinton CountyGR6. . Crown cited several factors contributing to its decision including (i) the limited growth prospects for casino gaming, (ii) increasing competitive pressures in virtually all gaming markets, (iii) the low valuation small and mid cap gaming companies receive in the public market, and (iv) the risk of increasing federal and state regulation and taxes. Crown said it is currently exploring a number of potential acquisitions and merger possibilities, but could not predict if and when any agreement may be reached. Edward R. McMurphy, President of Crown Casino stated, "Crown's Board is charged with the responsibility of maximizing shareholder value. In keeping with that responsibility, the Board has carefully weighed the prospects that exist in the gaming industry and has come to the conclusion that the Company's shareholders would be better served in another industry. This decision comes at an opportune op·por·tune adj. 1. Suited or right for a particular purpose: an opportune place to make camp. 2. Occurring at a fitting or advantageous time: an opportune arrival. time since earlier this year the Company liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. its remaining interest in its Louisiana gaming property, and currently the Company's assets consist principally of cash, marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has and real estate. Generally, we are seeking to acquire or merge with a company or companies that have a history of revenue and cash flow growth and that have excellent growth prospects in industry sectors that are viewed favorably in the public market. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op of the opportunities that lie ahead." This press release contains forward-looking statements reflecting current expectations. There can be no assurance that the Company's actual future performance will meet the Company's current expectations. Factors that could affect future performance include the risk that the Company may not be able to acquire or merge with companies with histories of revenue and cash flow growth or with excellent growth prospects, and the risk that even if the Company acquires or merges with companies that the Company believes have favorable prospects the public markets may not view such acquisition or merger favorably. CONTACT: Crown Casino Corporation Edward R. McMurphy, President 972/717-3423 |
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