Empire Resorts’ Largest Stockholder Exercises Basic Subscription Rights in Rights Offering
January 16 2015 - 7:00AM
Business Wire
$30.68 Million Gross Proceeds to
Company
Empire Resorts, Inc. (NASDAQ-GM:NYNY) announced that Kien Huat
Realty III Limited (“Kien Huat”), the Company’s largest
stockholder, exercised the basic subscription rights it was granted
in the Company’s ongoing rights offering on Thursday, January 15,
2015 at $7.10 per share. Such exercise generated approximately
$30.68 million of gross proceeds to the Company.
In accordance with a standby purchase agreement executed by the
Company and Kien Huat in relation to the rights offering, Kien Huat
has further agreed it would exercise all rights not otherwise
exercised by the other holders in the rights offering in an
aggregate amount not to exceed $50 million. The Company will pay
Kien Huat a commitment fee of $250,000 pursuant to the standby
purchase agreement. In addition, the Company will reimburse Kien
Huat for its expenses related to the standby purchase agreement in
an amount not to exceed $40,000. The consummation of the
transactions contemplated by the standby purchase agreement is
subject to customary closing conditions.
The Company distributed to its common stock holders and Series B
Preferred Stock holders one non-transferable right to purchase one
share of common stock at a subscription price of $7.10 per share
for each 5.6 shares of common stock owned, or into which their
Series B Preferred Stock was convertible, on January 2, 2015, the
record date for the offering. In addition to being able to purchase
their pro rata portion of the shares offered based on their
ownership as of January 2, 2015, stockholders may oversubscribe for
additional shares of common stock. Holders of rights may exercise
their subscription rights to purchase additional shares of our
common stock at the subscription price per share until prior to
5:00 p.m., New York City time, on February 2, 2015, subject to
extension and earlier termination. Subscription rights not
exercised by such time and date will expire and have no value.
Registration Statement
The Company has filed a registration statement (including a
prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the
Company has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free
by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the Company or our information agent, Morrow &
Co., LLC, will arrange to send you the prospectus if you request it
by calling (855) 201-1081.
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
registration statement on Form S-3 and the prospectus relating to
the rights offering, dated January 5, 2015.
About Empire Resorts
Empire Resorts owns and operates, through its subsidiary
Monticello Raceway Management, Inc., the Monticello Casino &
Raceway, a harness racing track and casino located in Monticello,
New York, and is 90 miles from midtown Manhattan. Further
information is available at www.empireresorts.com and
www.montreign.com.
Empire Resorts, Inc.Charles Degliomini,
845-807-0001cdegliomini@empireresorts.com
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