TORONTO, May 13, 2014 /CNW/ - POYDRAS GAMING FINANCE CORP. (formerly Great Northern Gold Exploration Corporation) (TSX-V: PYD) ("Poydras Gaming" or the "Company") is pleased to announce that its shares have commenced trading today on the TSXV under symbol "PYD" following the completion on May 9, 2014, of its reverse take-over of Great Northern Gold Exploration Corporation (the "RTO"). Concurrent with the RTO, the Company has completed a share offering of 13,380,000 shares at a price of CDN$0.25 per share for gross proceeds of CDN$3,345,000 and the Company also completed its debenture offering of 11% secured convertible debentures at an offering price of US$1,000 per convertible debenture for gross proceeds of US$7,732,000. The convertible debentures will trade under the symbol "PYD.DB.U". Please refer to the Company's press release dated May 9, 2014 for additional details about the RTO and concurrent offerings.
"Slot machines are a major driver of casino revenues, generally accounting for 70-90% of total revenues in regional casinos," said Peter Macy, CEO of Poydras Gaming. "There are approximately 900,000 slot machines in the United States, with less than 6% of slot machines on the Las Vegas Strip. Poydras Gaming is well-positioned to be a leader in the gaming finance industry particularly to under-served regional operators."
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. The Company intends to expand its operations in Oklahoma and California as well as enter into new markets. It currently has 282 gaming machines placed in casinos along with existing contracts to allow it the opportunity to place an additional 217 gaming machines in 2014 for a total number of 499 deployed and deployable machines.
Poydras Gaming intends to use the proceeds from the financings to expand its existing operations, which will primarily be achieved by improving access to capital by lowering its cost of funds and thus increasing the flexibility of the financing products which can be offered to its customers. In addition, Poydras Gaming intends to use the proceeds from the financings to acquire additional placements of gaming machine leases, including at least two new placements in Oklahoma casinos by December 31, 2014. The Company is also reviewing the expansion of operations into Louisiana and Mississippi in the next two years.
The Company has appointed to its Board of Directors:
Mr. Peter Macy, the CEO of Poydras Gaming Finance Corp., has over 15 years of experience as a private equity investor, investment banker, and corporate development professional. Prior to co-founding Poydras Gaming in 2013, Mr. Macy was a partner at Poydras Capital Partners, LLC, a private equity investment firm focused exclusively on the gaming industry. Mr. Macy started his investment banking career at J.P. Morgan before working as a Senior Vice President at Wells Fargo Securities. Mr. Macy holds a B.A. in International Politics and Economics from Middlebury College and an M.B.A. from the University of California – Berkeley.
Mr. Daniel Davila, the President of Poydras Gaming Finance Corp., is a veteran executive in the gaming industry. Mr. Davila is the founding member of the Foundation Gaming Group (formerly The Jay Daniel Company), and was the CFO and Treasurer of Torguson Gaming Group, and SVP, Senior Equity Analyst at Sterne, Agee & Leach. Mr. Davila holds a B.B.A. from the University of St. Thomas and an M.B.A. from Columbia University.
Mr. Michael Rumbolz,has extensive experience as both an executive and regulator in the gaming industry worldwide, and is a member of the Board of Members of Seminole Hard Rock Holdings and a member of the board of directors of Employers Holdings, Inc. (EIG-NYSE); and Global Cash Access (GCA-NYSE). Mr. Rumbolz was previously Chairman and CEO of Cash Systems, Inc., and Director and Manager of the Compliance Committee of Affinity Gaming, as well as serving as President and CEO of Anchor Gaming, Inc. (SLOT-NASDAQ). Mr. Rumbolz also served as a member and subsequently the Chairman of the Nevada Gaming Control Board and is the former Chief Deputy Attorney General of the State of Nevada.
Mr. Prakash Hariharan, former portfolio manager for Front Street Capital, is an experienced and active manager of growth portfolios with a focus on technology. Mr. Hariharan is also Chairman of Analytixinsight (ALY - TSXV), Board member of Wi2Wi Corp (TSX), and Aquia Resources (ASX), and holds a financial engineering (mathematical finance) degree and MBA from York University
Mr. Kim Oishi, has over twenty years of experience in financing and advising growth companies, and has served in senior management and board positions on a number of public and private companies. Mr. Oishi is founder and President of Grand Rock Capital Inc., a company that invests in growth companies and provides consulting services for investor relations, corporate finance, business development, and mergers and acquisitions for companies listed on the TSX, and is currently director and CEO of KCO Capital Inc. (TSXV: KCO.P). Mr. Oishi holds a Bachelor of Sciences degree and a MBA from the University of British Columbia.
For additional information please see the SEDAR website at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Macy, CEO
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.