Casino Journal Announces Letter of Intent to Acquire Poker Digest
LAS VEGAS, May 15 /PRNewswire/ -- Casino Journal Publishing Group, Inc. (OTC Bulletin Board: CJPG) today announced the signing of a Letter of Intent to acquire a 60% interest in Poker Digest, LLC of Las Vegas, Nevada. Poker Digest, LLC is the holding company for Poker Digest magazine and Classic Poker Cruises.
Poker Digest, in its second full year of publication, is a biweekly magazine focusing on the poker and card club niche market of the gaming industry. Card clubs were found predominantly in the Western states of California, Washington, and Nevada until a proliferation of gaming saw them spring up in such areas as Atlantic City, Mississippi, on riverboats throughout the Midwest, Arizona, New Mexico, Florida, and, now, across the continent of Europe. Poker rooms are in virtually every casino market in the United States.
Classic Poker Cruises is a division of Poker Digest, LLC. Classic Poker Cruises works with existing cruise lines to organize poker cruises. Utilizing their existing database of poker players, Classic Poker Cruises books poker players on cruises around the world. Once on the cruise, Classic Poker Cruises provides a professionally-staffed poker room offering low buy-in tournaments along with free lessons for the beginner or those wanting a refresher course. Classic Poker Cruises acts as the "house" in these poker rooms, providing the dealers, poker tables, and poker room managers.
According to the terms of the Letter of Intent, Casino Journal Publishing Group will issue 301,500 restricted common shares to the members of Poker Digest LLC in order to acquire their 60% interest. The remaining 40% interest is expected to be held by the founders of Poker Digest magazine and Classic Poker Cruises, Phil and June Field who will continue to operate the company. Poker Digest, LLC had combined magazine and cruise revenue of more than $900,000 in fiscal 1999. The transaction is expected to close within the next 60 days.
Commenting on the acquisition, Casino Journal Publishing Group, Inc. Chairman, CEO and Group Publisher Glenn Fine said, "It is my pleasure to announce this acquisition and welcome Phil and June Field to the Casino Journal Publishing Group family. We have worked with Poker Digest for the last 6 months and have been extremely impressed with their growth and their operations. Phil and June Field founded the first magazine for the poker and cardroom market in 1988. In 1998, they reentered the publishing business and began production of Poker Digest magazine. By combining the operations and staff of Poker Digest, LLC with the staff of Casino Journal, we are quite confident that the addition of Poker Digest magazine and Classic Poker Cruises will increase CJPG revenues by at least 10% on an annual basis over fiscal 1999. In addition, this acquisition opens the door to the California gaming market, the market which has the most growth potential for the gaming industry over the next few years. Casino Journal's consumer magazines have had limited exposure to this market while Poker Digest is distributed throughout the entire state. We believe that Poker Digest can open the doors to many markets which CJPG consumer magazines have not had much exposure to and we can do the same thing for Poker Digest magazine."
Phil and June Field added, "We are very enthused about working with such a professional group as CJPG. With their extensive experience in publishing and worldwide casino contacts, we expect Poker Digest to become the leading magazine in the world of poker. The cruise business should also explode as we venture into cruises to cover all aspects of gaming."
Casino Journal Publishing Group, Inc. publishes Casino Journal, the company's flagship magazine, and the most widely read trade publication serving the gaming industry; the National Gaming Summary, an extensive weekly newsletter that provides up-to-the-minute gaming news; the Gaming Industry Weekly and Daily Reports and the Daily Lodging Report and Daily Lodging Report - Asia Pacific targeting gaming and lodging executives and investors.
For the gaming consumer, CJPG publishes Casino Player and Strictly Slots, the nation's largest circulation consumer gaming publications, and the Atlantic City Insider, which targets the frequent Atlantic City gambler. The Company also produces the American Gaming, Lodging and Leisure Summit in conjunction with Bear Stearns & Co. and the law firm of Lionel Sawyer and Collins; the Southern Gaming Summit with the Mississippi Casino Operators Association; the Atlantic City Chamber of Commerce Business Expo, the Northern Gaming Summit in conjunction with the Michigan law firm of Fraser Trebilcock Davis & Foster and UNLV Casino Ops trade shows.
Safe Harbor: Certain statements in this press release, including statements regarding the anticipated development and expansion of the Company's business, and the intent, belief or current expectations of the Company, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. In addition, there is no assurance that the contemplated transaction will be completed or if completed, that it will be profitable for the company.
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SOURCE: Casino Journal Publishing Group, Inc.
CONTACT: Alan R. Woinski of Casino Journal Publishing Group, Inc., 201-599-8484, awoinski@casinocenter.com |
