Empire Resorts Announces Closing of Rights Offering
$11.4 Million Aggregate Gross Proceeds Expected to Company
MONTICELLO, N.Y. -- June 5, 2013
Empire Resorts, Inc. (NASDAQ-GM:NYNY) announced the conclusion of its rights
offering (the “Rights Offering”) and standby purchase of shares not sold in
the Rights Offering, in which upon completion it will issue a total of
6,032,153 shares of common stock at $1.8901 per share and raise approximately
$11.4 million in gross proceeds. This includes 1,383,819 shares issued to
holders upon exercise of their basic subscription rights, 3,650,849 shares
issued to Kien Huat Realty III Limited (“Kien Huat”), our largest stockholder,
upon exercise of its basic subscription rights and 213,138 shares issued to
holders upon exercise of their oversubscription rights in the Rights Offering.
Kien Huat will acquire the remaining 784,347 shares not sold in the Rights
Offering pursuant to the terms of a standby purchase agreement, which we
expect to finalize on or about June 11, 2013. The Company will pay Kien Huat a
fee of $40,000 for the shares purchased pursuant to the standby purchase
agreement and reimburse Kien Huat for its expenses related to the standby
purchase agreement in an amount of $40,000 for aggregate net proceeds of
approximately $8,302,963 from Kien Huat to the Company pursuant to the Rights
Offering. After giving effect to the Rights Offering, Kien Huat will own
approximately 62.71% of the outstanding shares of the Company's common stock.
The Company anticipates using the net proceeds of the Rights Offering, which
the Company expects to be approximately $11.1 million following the deduction
of expenses relating to the Rights Offering, to fund the expenses of the
Company’s new development project, which may include permitting,
infrastructure and shared master planning costs and expenses, and for general
working capital purposes.
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 final
prospectus relating to the Rights Offering, dated April 30, 2013.
Empire Resorts, Inc. owns and operates, through its subsidiary Monticello
Raceway Management, Inc., the Monticello Casino and Raceway, a harness racing
track and casino located in Monticello, New York, and is 90 miles from midtown
Empire Resorts, Inc.
Charles Degliomini, 845-807-0001
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