Magna Entertainment Corp. announces resignation of director
February 20 2009 - 8:52PM
PR Newswire (US)
AURORA, ON, Feb. 20 /PRNewswire-FirstCall/ -- Magna Entertainment
Corp. ("MEC" or "the Company") (NASDAQ: MECA; TSX: MEC.A) today
announced that Mr. Jerry Campbell, lead director and a member of
the Audit Committee, has stepped down as a director of MEC,
effective immediately. Frank Stronach, Chairman and Chief Executive
Officer of MEC, stated: "On behalf of everyone at MEC, I would like
to thank Jerry for his dedication and many years of service." As a
result of Mr. Campbell's resignation, MEC is not currently in
compliance with the audit committee requirements provided for in
Nasdaq Marketplace Rule 4350(d), due to the fact that MEC's Audit
Committee is no longer comprised of at least three independent
directors. MEC presently has two qualified independent directors on
its Audit Committee. MEC intends to rely on the cure period
provisions of Nasdaq Marketplace Rule 4350(d)(4), under which MEC
has until the earlier of MEC's next annual shareholders' meeting or
February 20, 2010 to regain compliance with Nasdaq's audit
committee requirements. ABOUT MEC MEC, North America's largest
owner and operator of horse racetracks, based on revenue, develops,
owns and operates horse racetracks and related pari-mutuel wagering
operations, including off-track betting facilities. MEC also
develops, owns and operates casinos in conjunction with its
racetracks where permitted by law. MEC owns and operates AmTote
International, Inc., a provider of totalisator services to the
pari-mutuel industry, XpressBet(R), a national Internet and
telephone account wagering system, as well as MagnaBet(TM)
internationally. Pursuant to joint ventures, MEC has a fifty
percent interest in HorseRacing TV(R), a 24-hour horse racing
television network, and TrackNet Media Group LLC, a content
management company formed for distribution of the full breadth of
MEC's horse racing content. This press release contains
"forward-looking statements" within the meaning of applicable
securities legislation, including Section 27A of the United States
Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934,
as amended (the "Exchange Act") and forward-looking information as
defined in the Securities Act (Ontario) (collectively referred to
as forward-looking statements). These forward-looking statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and the Securities Act
(Ontario) and include, among others, statements regarding expected
future compliance with Nasdaq Marketplace Rule 4350(d) and other
matters that are not historical facts. Forward-looking statements
should not be read as guarantees of future performance or results,
and will not necessarily be accurate indications of whether or the
times at or by which such performance or results will be achieved.
Undue reliance should not be placed on such statements.
Forward-looking statements are based on information available at
the time and/or management's good faith assumptions and analyses
made in light of the Company's perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate in the circumstances and
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond the Company's
control, that could cause actual events or results to differ
materially from such forward-looking statements. Important factors
that could cause actual results to differ materially from the
Company's forward-looking statements include, but may not be
limited to, the risk that the Company and MID fail to successfully
agree upon any alternative transaction to the reorganization
proposal previously announced on November 26, 2008 and material
adverse changes in: general economic conditions; the popularity of
racing and other gaming activities as recreational activities; the
regulatory environment affecting the horse racing and gaming
industries; the Company's ability to obtain or maintain government
and other regulatory approvals necessary or desirable to proceed
with proposed real estate developments; increased regulation
affecting certain of the Company's non-racetrack operations, such
as broadcasting ventures; and the Company's ability to develop,
execute or finance the Company's strategies and plans within
expected timelines or budgets. In drawing conclusions set out in
our forward-looking statements above, we have assumed, among other
things, that we will continue with our efforts to implement our
September 2007 adopted plan to eliminate the Company's debt,
although not on the originally contemplated time schedule,
negotiate and close, on acceptable terms, one or more core asset
sale transactions, comply with the terms of and/or obtain waivers
or other concessions from our lenders and refinance or repay on
maturity our existing financing arrangements (including a senior
secured revolving credit facility with a Canadian chartered bank,
the new loan that a subsidiary of MID ("MID Lender") made available
to MEC on December 1, 2008 and the bridge loan from MID Lender,
possibly obtain additional financing on acceptable terms to fund
our ongoing operations and there will not be any material further
deterioration in general economic conditions or any further
significant decline in the popularity of horse racing and other
gaming activities beyond that which has already occurred in the
current economic downturn; nor any material adverse changes in
weather and other environmental conditions at our facilities, the
regulatory environment or our ability to develop, execute or
finance our strategies and plans as anticipated. Forward-looking
statements speak only as of the date the statements were made. We
assume no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other
factors affecting forward-looking statements. If we update one or
more forward-looking statements, no inference should be drawn that
we will make additional updates with respect thereto or with
respect to other forward-looking statements. SOURCE: Magna
Entertainment Corp. DATASOURCE: Magna Entertainment Corp. CONTACT:
Blake Tohana, Executive Vice-President and Chief Financial Officer,
Magna Entertainment Corp., 337 Magna Drive, Aurora, ON, L4G 7K1,
Tel: (905) 726-7493, http://www.magnaent.com/
Copyright