Florida Gaming Corporation signs letter of intent to acquire Casino Management and Development Company.FT. PIERCE, Fla.--(BUSINESS WIRE)--Feb. 13, 1996--Florida Gaming 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 Small Cap - "BETS") announced today the signing of a Letter of Intent with Gold Star International, Inc. ("GSI GSI - Gensym Standard Interface ") to acquire the capital stock of Gold Star Casinos, Inc. ("Gold Star") a wholly-owned subsidiary of GSI. Gold Star is headquartered in Coconut Grove, Florida and owns the exclusive rights to operate the casino concessions on the following ships: M/V M/V Motor Vehicles M/V Motor Vessel M/V Merchant Vessel Crown Empress - Clearwater, Florida M/V Majestic Empress - St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. M/V Bluenose bluenose a name used in the UK for a photosensitive dermatitis of the horse's face marked by a cyanotic appearance in the early stages of skin which later sloughs. The disease occurs in the spring and may be accompanied by such a severe edema that it resembles purpura hemorrhagica. (Ferry) - Bar Harbor, Maine Bar Harbor, Maine, may refer to:
Upon closing, Gold Star will also have an option to acquire from a principal of Gold Star and others an assignment of 50% of the profits from the casino concession aboard the M/V Discovery I -- operating from Ft. Lauderdale, Florida. After the exercise of the M/V Discovery I option, Gold Star's casino operating concessions will involve about 22,500 square feet of gaming space, containing 731 slot machines, and 74 table games -- a total of 1,175 gaming positions. Gold Star has approximately 125 employees with offices in Coconut Grove and St. Petersburg, Florida, and New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . For the fiscal year ended May 31, 1995, Gold Star's slot handle (money wagered) was $103,950,950 and the "drop" from table games was $41,266,885. Gold Star's revenues and income from operations (unaudited) were approximately $18,392,055 and $1,905,022, respectively. The Letter of Intent anticipates that GSI will receive, at Closing, 200,000 shares of Florida Gaming common stock in exchange for 100% of the stock of Gold Star Casinos, Inc. GSI can also receive up to 300,000 additional shares of Florida Gaming stock over a four (4) year period pursuant to the "earn-out" provisions of the Letter of Intent. The letter of intent is not a binding agreement between the parties. Consummation of the transaction is subject to several significant conditions, including the completion of due diligence investigations by both parties, the negotiation and execution of a definitive acquisition agreement between the parties, the negotiation of employment arrangements with certain members of GSI's management, the approval of the parties' respective Boards of Directors and GSI stockholders, and the receipt of consents from the GSI senior lenders. Neither consummation of the transaction, nor the operating results anticipated therefrom, can be assured. Both parties have agreed to try to close the proposed transaction within 90 days. W. Bennett Collett, Chairman of Florida Gaming stated, "The combination of Gold Star and Florida Gaming will create critical depth in management and development talent needed for Florida Gaming's future expansion plans. Combined annual gaming revenues for 1995 would be approximately $22.6 million compared to $4.2 million for Florida Gaming alone for fiscal 1995 -- an increase of about 438%. This merger should be a very positive move for Florida Gaming shareholders." Clive Tilley, Chairman of Gold Star commented that, "This merger will allow the casino development and management disciplines within Gold Star to expand Florida Gaming into both land-based and offshore casinos. The combined expertise and business plans of each company will be combined to achieve this -- the prospects are very exciting!" Florida Gaming is involved in Native American gaming ventures with the Rincon San Luiseno Band of Mission Indians in northern San Diego County, California San Diego County is a county located on the Pacific Ocean in the far southwest of the U.S. state of California, United States along its border with Mexico. According to the 2000 Census, its population was 2,813,833, making it the third largest county by population in the state and , the Apache Tribe of Oklahoma (near Wichita Falls, Texas Wichita Falls is a city in Wichita County, Texas, United States. As of the 2000 census, the city had a total population of 104,197. It is the principal city of the Wichita Falls Metropolitan Statistical Area, which encompasses all of Archer, Clay and Wichita counties. ), and the Ponca Tribe of Nebraska, (Omaha). Florida Gaming is currently re-evaluating its proposed gaming venture with the Ponca Tribe of Nebraska based on recent developments adversely affecting the prospects for Indian gaming in the state. On February 6, 1996, the Nebraska legislature failed to pass legislation that would have authorized a voter referendum on legalizing casino gaming in the state. In addition, as a result of a November, 1995 decision by the United States Court of Appeals The United States courts of appeals (or circuit courts) are the intermediate appellate courts of the United States federal court system. A court of appeals decides appeals from the district courts within its federal judicial circuit, and in some instances from other for the Eighth Circuit, the Bureau of Indiana Affairs has indefinitely suspended action on land-in-trust applications from Indian tribes in Nebraska and other Eighth Circuit states. Florida Gaming also owns and operates an 80,000 sq. ft. pari-mutuel wagering facility at Ft. Pierce, Florida where live Jai-Alai games are played and Inter-Track wagering (ITW ITW In The Wild (informatics, antivirus research) ITW Information Theory Workshop (IEEE) ITW Into Thy Word (religion) ITW Into the Woods ) is conducted. Florida Gaming's ITW division offers simulcast pari-mutuel wagering on horse racing (both thoroughbred and harness), dog racing, and Jai-Alai games. The total handle (money wagered) at the Ft. Pierce facility for the year ended December 31, 1995 was $25,344,674, compared to $19,232,481 for the same period in 1994 -- an increase of $6,112,193 (32%). CONTACT: Florida Gaming Corporation W. Bennett Collett, 502/589-2000 or 407/464-7500 |
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