Empire Resorts Announces Closing of Rights Offering
June 05 2013 - 3:33PM
Business Wire
Empire Resorts, Inc. (NASDAQ-GM:NYNY) announced the conclusion
of its rights offering (the “Rights Offering”) and standby purchase
of shares not sold in the Rights Offering, in which upon completion
it will issue a total of 6,032,153 shares of common stock at
$1.8901 per share and raise approximately $11.4 million in gross
proceeds. This includes 1,383,819 shares issued to holders upon
exercise of their basic subscription rights, 3,650,849 shares
issued to Kien Huat Realty III Limited (“Kien Huat”), our largest
stockholder, upon exercise of its basic subscription rights and
213,138 shares issued to holders upon exercise of their
oversubscription rights in the Rights Offering. Kien Huat will
acquire the remaining 784,347 shares not sold in the Rights
Offering pursuant to the terms of a standby purchase agreement,
which we expect to finalize on or about June 11, 2013. The Company
will pay Kien Huat a fee of $40,000 for the shares purchased
pursuant to the standby purchase agreement and reimburse Kien Huat
for its expenses related to the standby purchase agreement in an
amount of $40,000 for aggregate net proceeds of approximately
$8,302,963 from Kien Huat to the Company pursuant to the Rights
Offering. After giving effect to the Rights Offering, Kien Huat
will own approximately 62.71% of the outstanding shares of the
Company's common stock.
The Company anticipates using the net proceeds of the Rights
Offering, which the Company expects to be approximately $11.1
million following the deduction of expenses relating to the Rights
Offering, to fund the expenses of the Company’s new development
project, which may include permitting, infrastructure and shared
master planning costs and expenses, and for general working capital
purposes.
Cautionary Statement Regarding Forward Looking
Information
Statements in this press release that are not historical facts
are “forward-looking statements” that may involve material risks
and uncertainties. The company wishes to caution readers not to
place undue reliance on such forward-looking statements, which
statements are made pursuant to the Private Securities Litigation
Reform Act of 1995, and as such, speak only as of the date made.
For a full discussion of risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see “Risk Factors” in the company’s
final prospectus relating to the Rights Offering, dated April 30,
2013.
About Empire
Empire Resorts, Inc. owns and operates, through its subsidiary
Monticello Raceway Management, Inc., the Monticello Casino and
Raceway, a harness racing track and casino located in Monticello,
New York, and is 90 miles from midtown Manhattan.
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