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 TORONTO, Aug. 26 /PRNewswire/ -- Dion Entertainment Corp. ("Dion") (Toronto: DIO) announced today that it has retained Gordon Capital Corp. to raise up to $45,000,000 by way of special warrants to finance its commitment to Dion Showboat Corp. in the event that Dion Showboat Corp.'s bid to finance, design and construct a casino in Windsor, Canada, is accepted by the government of Ontario. The special warrants will only be made available to Ontario-based unions and union-based pension plans. Dion Showboat Corp. is a joint venture of Dion Entertainment Corp. and Showboat Canada Inc., a wholly owned subsidiary of Showboat Inc. (NYSE: SBO).
 The special warrant purchase price will be equal to the weighted average trading price of Dion shares on The Toronto Stock Exchange for a period of 20 trading days following the announcement of the acceptance of Dion Showboat Corp.'s bid less 6 percent, subject to a minimum price of $5.75 and a maximum price of $10.00. The closing of the proposed offering, which is subject to regulatory approval, is scheduled to take place on or before Oct. 1, 1993.
 Richard Pearn, president of the Essex and Kent Counties Building and Construction Trades Council, stated: "The casino industry will be good for the economy of Ontario and will create thousands of new jobs for our members. We welcome the opportunity to participate in the Dion Showboat bid through an investment in Dion. We strongly support this Canadian- based bid for the Windsor casino project."
 In recognition of this significant investment, Dion has agreed to appoint a nominee of the investing unions to its board of directors once the offering has been completed.
 Dion also announces the resignation of Mr. Leo Dion as Chairman of the Board and director of Dion and the resignation of Mr. Michael Perik as a director of Dion. Ms. Norma Coleman of Windsor, Ontario, a director of Dion Showboat Corp. as well as its Vice President of Community Relations, has been appointed as a new director of Dion. As well, Dr. Bryan Blevins of Cortez, Colo., has been appointed as Vice Chairman and a new director of Dion. Bryan Blevins is Managing General Partner of Full House Ltd., the partnership with which Dion has agreed to pursue Indian gaming management joint ventures in the United States. Mr. Alan Campney, a current director of the corporation, has been appointed Chairman of the corporation.
 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).
 Dion is a public company listed on The Toronto Stock Exchange under the symbol "DIO."
 -0- 8/26/93 R
 /CONTACT: E. Marshall Pollock, Q.C., president and CEO, Dion Entertainment, 416-444-8081, Alain Lambert, investor relations, Dion Entertainment, 514-393-7212; or Brad Griffiths, director, Gordon Capital, 416-868-5425/

CO: Dion Entertainment Corp.; Gordon Capital Corp.; Dion Showboat Corp. ST: Alberta IN: CNO SU: OFR PER

LS-JL -- LA007 -- 6445 08/27/93 02:05 EDT
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Publication:PR Newswire
Date:Aug 27, 1993

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