Empire Resorts’ Largest Stockholder Exercises Portion of Basic Subscription Rights in Rights Offering
January 14 2016 - 10:51AM
Business Wire
Approximately $30 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 a portion of the basic subscription rights
it was granted in the Company’s ongoing rights offering on
Thursday, January 14, 2016 at $14.40 per share. Such exercise
generated approximately $30 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 agreed it would exercise the remainder of its basic
subscription rights prior to the expiration of the rights offering.
In addition, 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 $290 million. The
Company will pay Kien Huat a commitment fee of $1,450,000 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 $50,000. 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 transferable right to purchase one
share of common stock at a subscription price of $14.40 per share
for each 0.4748644 shares of common stock owned, or into which
their Series B Preferred Stock was convertible, on January 4, 2016,
the record date for the offering. The subscription rights are
listed for trading on the Nasdaq Global Market under the symbol
“NYNYR” and we expect such listing to continue until February 10,
2016 unless the rights offering is terminated or extended.
If a holder of subscription rights fully exercises its basic
subscription rights (including in respect of subscription rights
transferred from others), such holders may oversubscribe for
additional shares of common stock. Holders of rights may exercise
their subscription rights to purchase shares of our common stock at
the subscription price per share until prior to 5:00 p.m., New York
City time, on February 10, 2016, 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 4, 2016.
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.monticellocasinoandraceway.com.
As a result of the award of a gaming facility license from the
New York State Gaming Commission, the Company, through its
subsidiary Montreign Operating Company, LLC, will begin
construction of Montreign Resort Casino – an 18-story casino, hotel
and entertainment complex with approximately 102 table games, 2,150
state of the art slot machines and 332 luxury rooms, which includes
12 penthouse suites, 8 garden suites and 7 two-story villas,
designed to meet 5-star and 5-diamond standards. For additional
information, please visit www.montreign.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160114005895/en/
Empire Resorts, Inc.Charles Degliomini,
845-807-0001cdegliomini@empireresorts.com
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