Poydras Gaming Finance Corp. Announces 600 Gaming Machine Placement Agreement in Oklahoma
Expected to Generate Approximately
$6 Million in Annual Revenue Upon Full Deployment
VANCOUVER, Jan. 13, 2015 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) ("Poydras" or the "Company") in partnership with the Integrity Companies, has entered into a long-term gaming machine placement agreement with the Tonkawa Tribe of Indians of Oklahoma. Under the terms of the agreement, Poydras and Integrity will provide 600 Class III gaming machines (such as slot machines) under a 6-year and 11-month contract, and up to $5.5 million in funding for the renovation of the Native Lights Casino and additional development at the Tonkawa West Casino. On a fully deployed basis, the placement agreement is expected to generate approximately $6 million in annual revenue for Poydras.
"We are delighted to announce this new long-term partnership with the Tonkawa Tribe to support the continued expansion of their successful multi-property gaming enterprise," said Peter Macy, CEO of Poydras. "This transaction is a clear indication of the growth opportunity created by our acquisition of Integrity and will have an immediate financial impact on our combined Company."
Under the terms of the machine placement agreement, Poydras and Integrity will take over floor space and games currently leased directly by a number of machine vendors including, but not necessarily limited to, IGT, Scientific Games (WMS and Bally), Aristocrat, Konami, and Ainsworth. It is expected that the majority of gaming machines purchased will be games already in operation with the balance comprised of new or upgraded games. Development funds will be advanced over an approximately 6-month renovation period and subject to the negotiation of acceptable purchase agreements with the Tonkawa Tribe's existing vendors. Poydras is in active discussions with multiple capital sources, including the machine vendors, regarding the financing of the placement agreement.
Poydras management expects to close its previously announced acquisition of the Integrity Companies (see News Release dated September 29, 2014) by the end of the first quarter. On a combined basis, with this placement agreement, Poydras and Integrity will have over 2,500 machines under participation leases with 26 casinos.
For additional information please see the SEDAR website at www.sedar.com.
About Poydras Gaming Finance Corp.:
Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. It owns and finances slot machines including long-term lease contracts across four casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California. Additional information about the Company can be found on the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release is considered forward-looking within the meaning of certain securities laws and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Poydras Gaming Finance Corp.
Peter Macy, CEO, Poydras Gaming Finance Corp., Phone: (604) 683-8393, Email: [email protected]
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