Printer Friendly

DION ENTERTAINMENT ANNOUNCES ACQUISITION OF INTEREST IN LOUISIANA INDIAN GAMING CASINO AND KANSAS CLASS II FACILITY

 TORONTO, Nov. 9 /PRNewswire/ -- Dion Entertainment Corp. (the "Company" or "Dion") (TSE: DIO) announced today the acquisition of a 50 percent net profit interest resulting from the management of the Cypress Bayou Class III casino located on the Chitimacha Indian Reservation in Charenton, La. In addition, Dion announced that it has acquired the rights to manage a Class II facility on the lands of the Kickapoo Tribe of Indiana located in Horton, Kan.
 The Charenton facility is 30,000 square feet with an 1,800 seat Class II high stakes bingo hall, snack bar and gift shop. This facility has been remodelled to accommodate 1,200 bingo seats and to convert 8,000 square feet of existing space into a slot/video area which is to be equipped with 450 gaming devices by early 1994.
 The Charenton facility is to be managed by Royal Associates Management, Inc. ("RAMI") under a management agreement with the Chitimacha Tribe of Charenton, La. Sodak Gaming, Inc. (NASDAQ: SODK), which has financed the development and construction expenses as well as the management expenses for this facility, has the right to a 50 percent net profit interest under this management agreement. Dion, through its wholly owned subsidiary Dion First American Inc., has agreed to acquire this 50 percent interest from Sodak Gaming, Inc, as well as Sodak Gaming, Inc.'s interest in promissory notes executed by the Chitimacha Tribe in the aggregate amount of U.S. $1,200,000.
 Sodak Gaming, Inc. has entered into a letter of intent with the Kickapoo Tribe of Indiana to reactivate and manage a Class II bingo and other permissable non-banking games on the lands of the Kickapoo Tribe in Horton, Kan. A Class III facility is expected to be opened on this site within 18 to 24 months. Dion, through Dion First American Inc., has agreed to acquire Sodak Gaming, Inc.'s rights under this letter of intent as well as its interest in certain promissory notes executed by the Kickapoo Tribe in the aggregate amount of U.S.$457,450.
 Dion First American Inc. has agreed to pay U.S. $5,500,000 to Sodak Gaming, Inc. for its interests in the Louisiana and Kansas projects. U.S.$4,000,000 of such purchase price is payable in cash on closing, with the balance to be payable over a one year period commencing on the earlier of February 15, 1994 and the date that the management agreement in respect of the Charenton casino is approved by U.S. gaming regulatory agencies.
 Bryan Blevins, C.E.O. & President of Dion commented, "After the closing of this transaction and the acquisition of a controlling interest in Full House, Ltd., Dion will manage Class III facilities in two states, which facilities contain a total of 850 to 1,000 table games and electronic gaming devices. We are currently reviewing Class III opportunities in a number of other states. Our growth strategy calls for an increase of our Indian gaming activities."
 Michael Wordeman, Chairman and C.E.O. of Sodak Gaming, Inc. added, "Sodak has had an ongoing relationship with Dion's new President and C.E.O. in connection with Indian gaming operations in the past, and will continue to explore mutually rewarding joint ventures in the future."
 Dion is the first Canadian publicly traded gaming company and is one of the largest providers of facilities for the operation of commercial bingo halls in Canada. Dion is also the exclusive distributor in Canada of all gaming equipment manufactured by Bally Gaming Inc. of Las Vegas, a wholly owned subsidiary of Bally Gaming International, Inc. (NASDAQ: BGII).
 -0- 11/09/93
 /CONTACT: Mr. Alan Campney, Chairman, Dion Entertainment Corp., 604-736-4846; Mr. Alain Lambert, Investor Relations Director of Dion Entertainment Corp., 514-393-7212; for Nov. 9, 1993 only: 702-252-7777 Rm. 1019; Mr. Bryan O. Blevins, President & Chief Executive Officer, 303-565-7000/
 (DIO. SODK BGII)


CO: Dion Entertainment Corp.; Sodak Gaming, Inc.; Bally Gaming
 International, Inc. ST: Ontario, Louisiana, Kansas IN: CNO SU: TNM


LG -- NY049 -- 2204 11/09/93 10:56 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 9, 1993
Words:676
Previous Article:MEDIMMUNE AND CYANAMID SIGN FOUR DRUG, $30 MILLION STRATEGIC ALLIANCE; MEDIMMUNE AND CYANAMID TO BEGIN SELLING ZOSYN TODAY
Next Article:VIDEOCART SEEKS TO ENFORCE IRI AGREEMENT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters