Diamondhead Casino Corporation Issues Status Report
Friday November 7, 4:15 pm ET
LARGO, Fla., Nov. 7 /PRNewswire/ -- Diamondhead Casino Corporation (OTC Bulletin Board: DHCC - News; the "Company") issued a status report today for its shareholders.
On June 23, 2008, the Company signed a non-binding Letter of Intent with Casinos Austria International Holding, GMBH ("CAI") to form a joint venture partnership to develop, build and operate a destination casino resort at the Company's Diamondhead, Mississippi property. On September 22, 2008, the Company, at the request of CAI, extended the terms of the Letter of Intent through December 21, 2008. On November 4, 2008, CAI informed the Company that, although it still believes in the project and hopes to continue as soon as the economic situation improves and allows for acceptable financing for the project, it is ceasing its activities with respect to the project until such time as the market recovers and successful financing for the project is available. In the interim, the Company will explore opportunities and alternatives available to secure the required financing for the project. In addition, the Company intends to proceed with actual site selection for its casino resort and, to the extent possible, to obtain those permits required so as to be positioned to proceed when acceptable financing does become available.
Deborah A. Vitale, President and CEO of the Company, stated: "We are pleased that Casinos Austria International Holding, GMBH still believes in our project and hopes to continue as soon as the economic situation permits. The gaming industry, like other industries, has been forced to put various projects on hold due to the current financial crisis. Like our competitors, given the substantial financing required for our project, we are not immune to the crisis."
The Company also reported that on October 23, 2008, it entered into an agreement with an unrelated third party for a $1 million unsecured Line of Credit. The terms of the Line of Credit are more fully discussed in the Company's SEC filings. |
