COLORADO SPRINGS, Colorado,
Aug. 5, 2020 /PRNewswire/
-- Century Casinos, Inc. (Nasdaq Capital MarketĀ®: CNTY)
("Century Casinos" or the "Company"), announced today that its
subsidiary Century Resorts Alberta, Inc. ("CRA") has entered into a
definitive agreement to sell the casino operations of Century
Casino Calgary ("Calgary") to
2267166 Alberta Ltd. (the "Buyer") for CAD
10.0 million ($7.5 million
based on the exchange rate on July 31,
2020) plus a three year quarterly earn out as specified in
the agreement.
The CAD 10.0 million was paid at
the execution of the definitive agreement and is non-refundable,
except as described in the Agreement, but subject to working
capital and other adjustments. CRA will continue to operate Century
Sports (sports bar, bowling and entertainment) and to own the real
estate.
The Agreement contemplates that CRA will enter into a lease
agreement with the Buyer for the Calgary premises. The lease will have an
annual net rent of approximately CAD
480,000 ($358,102 based on the
exchange rate on July 31, 2020) and a
term of three years.
"This transaction immediately strengthens our balance sheet,"
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers
of Century Casinos remarked. "The Calgary casino is one of our smaller
operations, contributing $8.4 million
in net operating revenue and $1.2
million in Adjusted EBITDA (approx. half from the casino
operations we are selling and half from sports bar, bowling and
entertainment operations we will continue operating) in 2019,"
Haitzmann and Hoetzinger concluded.
The transaction, which is expected to close in fall 2020, is
subject to approval by the Alberta Gaming, Liquor and Cannabis
Commission, but the CAD 10.0 million
payment already made to Century Casinos is non-refundable except as
described in the Agreement.
About Century Casinos, Inc.:
Century Casinos, Inc. is a casino entertainment company. The
Company owns and operates Century Casino & Hotels in
Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino
Cape Girardeau and Caruthersville,
Missouri, in Calgary and
St. Albert, Alberta, Canada;
Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century
Mile Racetrack and Casino ("CMR") in Edmonton, Alberta, Canada; and Century Bets!
Inc. ("CBS"). CBS and CMR operate the pari-mutuel off-track horse
betting networks in southern and northern Alberta, respectively. Through its Austrian
subsidiary, Century Resorts Management GmbH ("CRM"), the Company
holds a 66.6% ownership interest in Casinos Poland Ltd., the
operator of eight casinos throughout Poland; and, a 75% ownership interest in
each of Century Downs Racetrack and Casino in Calgary,
Alberta, Canada. The Company
operates one ship-based casino. The Company, through CRM, also owns
a 7.5% interest in, and provides consulting services to, Mendoza
Central Entretenimientos S.A., a company that provides
gaming-related services to Casino de Mendoza in
Mendoza, Argentina. The Company continues to pursue other
projects in various stages of development.
Century Casinos' common stock trades on The Nasdaq Capital
MarketĀ® under the symbol CNTY. For more information about Century
Casinos, visit our website at www.cnty.com.
This release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as
"expect," "anticipate," "believe," "intend," "estimate," "plan,"
"target," "goal," or similar expressions, or future or conditional
verbs such as "will," "may," "might," "should," "would," "could,"
or similar variations. These statements are based on the beliefs
and assumptions of the management of Century Casinos based on
information currently available to management. Such forward-looking
statements include, but are not limited to, certain plans,
expectations, goals, projections, and statements about the benefits
of and timing for closing the transaction and performance of the
Calgary casino, as well as Century
Casinos' plans, objectives, expectations, intentions, and other
statements relating to cash flow and operating results. Such
forward-looking statements are subject to risks, uncertainties and
other factors that could cause actual results to differ materially
from future results expressed or implied by such forward-looking
statements. Important factors that could cause actual results to
differ materially from forward-looking statements include, among
others, risks described in the section entitled "Risk Factors"
under Item 1A in the Company's Annual Report on Form 10-K for the
year ended December 31, 2019, in Item
8.1 in our Current Report on Form 8-K filed on May 8, 2020, and in subsequent periodic and
current SEC filings the Company may make. Century Casinos
disclaims any obligation to revise or update any
forward-looking statement that may be made from time to time by it
or on its behalf.
Logo -
https://mma.prnewswire.com/media/682293/Century_Casinos_Logo.jpg