Peak Resorts Announces Release of EB-5 Project Funds
December 13 2016 - 4:15PM
Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner
and operator of high-quality, individually branded ski resorts in
the United States, today announced that the United States
Citizenship and Immigration Services (USCIS) approved the first
I-526 Petition submitted by an investor in Mount Snow’s EB-5
offering, allowing the funds raised in the offering to be released
from escrow immediately. Mount Snow, the largest resort owned
by Peak Resorts, is using the money to fund two development
projects at the resort. While awaiting this USCIS approval, the
company has invested more than $15 million in project construction
since February 2015. Peak Resorts will now be reimbursed for that
spending as the committed funds are released from escrow.
USCIS approval of an I-526 Petition is the first step in the
process under which an immigrant who invests in an EB-5 program can
become a permanent resident of the United States and was the final
step needed in order for offering funds to be released from
escrow.
Money raised through Mount Snow’s EB-5 offering will fund two
separate construction developments: Mount Snow’s West Lake Water
Project and Carinthia Ski Lodge Project. The West Lake Water
Project includes the construction of a 120-million-gallon water
storage pond for snowmaking, three pump houses and other associated
infrastructure. West Lake will increase water storage for
snowmaking by six times, enabling Mount Snow to open more trails
earlier in the season and increase the snowmaking capacity on
existing trails. Construction of the West Lake Water project began
in February 2015 and is expected to be substantially completed
prior to the 2017-2018 ski season.
"We are exceptionally pleased that the EB-5 project funds can
now be released from escrow so that we can continue project
development,” said Timothy D. Boyd, president and chief executive
officer of Peak Resorts. “Once completed, the West Lake project
will allow Mount Snow to start each ski season with as much as 50
percent of its terrain open. It will also provide enough water to
eventually cover 100 percent of our trails with snowmaking. Further
enhancing the ski experience at Mount Snow should help us gain an
even greater share of the Vermont ski market – the No. 1
market in the region.”
Peak Resorts’ Carinthia Ski Lodge Project will consist of
construction of a new three-story, state-of-the-art ski lodge that
will replace an existing 50-year-old lodge at the base of the
Carinthia Slopes at Mount Snow. Totaling approximately 36,000
square feet and increasing by more than four times the size of the
existing lodge, it will house several food outlets, a rental shop,
retail and convenience store, and other skier services. The new
lodge has been designed so the interior can be modified during the
off-season to host conferences, weddings and other group events,
and it will also serve as the hub for upscale accommodation and
recreational facilities that the company plans to build as part of
the Mount Snow master plan. The Carinthia Ski Lodge Project is
expected to be substantially completed in advance of the 2018-2019
ski season.
Richard K. Deutsch, vice president of business and real estate
development, and president of Mt. Snow, Ltd., stated, "The master
plan for Mount Snow was approved by the state of Vermont in July
2011 and is expected to enhance the overall visitor experience at
Mount Snow. Construction of the West Lake and Carinthia Ski Lodge
is the first phase of executing Mount Snow’s master development
plan and represents a $66 million investment, of which
$52 million is being funded through the EB-5 program.”
Steve Mueller, chief financial officer, said, “As we noted, we
will be immediately reimbursed for the more than $15 million that
we invested in project construction since February 2015. This
reimbursement will help further strengthen our balance sheet and
bolster the long-term liquidity of the company.”
About Peak ResortsHeadquartered in Missouri,
Peak Resorts is a leading owner and operator of high-quality,
individually branded ski resorts in the U.S. The company now
operates 14 ski resorts primarily located in the Northeast and
Midwest, 13 of which are company owned, including Hunter Mountain,
the Catskills' premier winter resort destination.
The majority of the resorts are located within 100 miles of
major metropolitan markets, including New York City, Boston,
Philadelphia, Cleveland and St. Louis, enabling day and overnight
drive accessibility. The resorts under the company's umbrella offer
a breadth of activities, services and amenities, including skiing,
snowboarding, terrain parks, tubing, dining, lodging, equipment
rentals and sales, ski and snowboard instruction and mountain
biking and other summer activities. To learn more, visit the
company’s website at PeakResorts.com, or follow Peak Resorts on
Facebook (https://www.facebook.com/skipeakresorts), Twitter or
Instagram for resort updates.
Forward Looking StatementsThis news release
contains forward-looking statements regarding the future outlook
and performance of Peak Resorts, Inc., within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are subject to a variety of risks and uncertainties that could
cause actual results to differ materially from current
expectations. These risks and uncertainties are discussed under the
caption “Risk Factors” in the company’s Annual Report on Form 10-K
for the year ended April 30, 2016, filed with the Securities and
Exchange Commission, and as updated from time to time in the
company’s filings with the SEC. Peak Resorts undertakes no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
For Further Information:
616-233-0500
InvestorRelations@PeakResorts.com
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