Approximately $30 Million Gross Proceeds to Company
MONTICELLO, N.Y.--(BUSINESS WIRE)--Jan. 14, 2016--
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.
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
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
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160114005895/en/
Source: Empire Resorts, Inc.
Empire Resorts, Inc.
Charles Degliomini, 845-807-0001