Poydras Gaming closes $4.6-million private placement

2015-04-30 11:17 ET - News Release

Mr. Peter Macy reports
POYDRAS GAMING FINANCE CORP. CLOSES OVERSUBSCRIBED PRIVATE PLACEMENT FINANCING; PROCEEDS ENABLE FULL FUNDING OF TONKAWA 600 MACHINE PLACEMENT AGREEMENT
Poydras Gaming Finance Corp. has completed its previously announced non-brokered private placement (see news release dated April 14, 2014), effective April 29, 2015. Poydras issued 66,073,284 common shares at seven cents per share, raising $4.6-million in gross proceeds, a 3-per-cent increase over the original financing target of $4.5-million. All shares issued in connection with the private placement are subject to a statutory four-month hold from the date of issuance. Net proceeds from the private placement will be used to finance the company's 600-machine placement with the Tonkawa Tribe of Indians of Oklahoma (see news release dated Jan. 13, 2015). As announced on April 14, 2015, Poydras initiated equity financings whereby it will raise in aggregate up to $11.5-million. With closing of the private placement, the company expects to complete the financings by raising approximately $7.0-million by way of prospectus offering. Poydras has engaged an agent for the prospectus offering, and the prospectus offering is anticipated to close in the next 30 to 45 days. The prospectus offering comprises subscription receipts priced at seven cents, which will be convertible into common shares upon the satisfaction of certain conditions including satisfaction of the conditions precedent to the acquisition of the Integrity companies. The net proceeds from the prospectus offering will be used to fulfill the company's obligations for the cash portion of the purchase price for its acquisition of the Integrity companies (see news release dated Sept. 29, 2014), as well as for general working capital purposes. The prospectus offering is subject to TSX Venture Exchange approval.

"We are very excited to close this oversubscribed private placement financing, as it provides us with the capital to fully fund the placement of 600 machines with the Tonkawa Tribe of Indians of Oklahoma, adding approximately $6-million (U.S.) in estimated annual revenue for the company," said Peter Macy, chief executive officer of Poydras. "The financing gives Poydras financial flexibility to aggressively pursue our growth strategy."