06/11/15 Philippine Casino and Hospitality Acquisition to Proceed
Highlights:
• Stotsenberg Leisure & Hotel Corporation Acquisition to Proceed
• Acquisition price US$26 million in shares (in three tranches)
• US$25 million Profit Guarantee
• Highly experienced casino operator management group appointed
• Philippines fastest growing gaming market in Asia (and elsewhere), alone achieving 13% GGR growth1
• Recently appointed COO Ken Wong with more than 14 years experience in Gaming and Gaming related industries
“Research conducted by Citi and Macquarie Research has found that the Philippines gaming industry is the fastest growing in the Asia. Our entry into the gaming industry is well timed to capitalise on this potential,” said Ken Wong, FCG Chief Operating Officer.
E!xcite Gaming and Entertainment Inc (E!xcite) will provide management and operate the hotel and gaming business (see profile below). E!xcite have provided a 5-year profit guarantee of US$5 million per annum (US$25M) (Profit Guarantee). E!xcite will pay any shortfall to the Company and any securities issued to E!xcite will be linked to achieving the Profit Guarantee and released proportionately as the Profit Guarantee is met.
Upon receipt of audited accounts verifying the Net Profit After Tax (NPAT) for each of the 2016 – 2020 Financial Years is US$5,000,000 or more, E!xcite will be issued 28,440,000 shares representing the guaranteed US$5 million profit.
In the event that the NPAT is less than US$5,000,000, E!xcite will pay to the company the difference between US$5,000,000 and the actual NPAT before the shares are issued.
dyor
FCG Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
