Casino Journal Hires Advisor for Merger Talks
LAS VEGAS, Nov. 12 /PRNewswire/ -- Casino Journal Publishing Group, Inc. (OTC Bulletin Board: CJPG - news) today announced that in response to expressions of interest from 3 separate parties about entering into discussions about a business combination, the Company has engaged the investment banking firm of Jon Adams Financial Co., L.L.P., a Minneapolis, Minnesota entity with expertise in gaming, mergers and acquisitions and investment banking.
Since September, Casino Journal Publishing Group, Inc. has held preliminary discussions with 3 separate entities about the possibility of Casino Journal being acquired by these entities. In the last week, the Company has received a request for due diligence to further these discussions. The Company feels that it is in the best interests of its shareholders to engage Jon Adams Financial Co., L.L.P. to identify and evaluate opportunities to maximize shareholder value and to initiate discussions with potential partners regarding business combinations, strategic partnerships and capital investments in the Company.
Commenting on this announcement, Casino Journal Publishing Group, Inc. Chairman and CEO Glenn Fine said, ''With our current growth rate, we have always felt that our public valuation was not accurate. As our 2nd quarter results showed, this Company has explosive potential to generate strong earnings for our shareholders. Our 3rd quarter results will show that this growth rate is continuing as shown by a nearly 25% increase in revenues. Casino Journal Publishing Group is on track to increase revenues to nearly $9 million in fiscal 1998, up from $7.2 million last year. As a result of our ongoing aggressive marketing, on a cash basis we are on track to increase subscription sales of our publications by 60% over last year. This increase in subscriptions will show up in fiscal 1999 while the marketing expenses and start up costs of our newest publication, Strictly Slots, will impact our profit margins in the 3rd and 4th quarter. We are not surprised that we have received expressions of interest to acquire our Company. The Board of Directors will review all offers which Jon Adams Financial negotiates for us and will update our shareholders upon receipt of the offers.''
Casino Journal Publishing Group, Inc. publishes Casino Player, the leading consumer magazine for the gaming industry with total circulation of over 400,000 a month; Strictly Slots, the newest consumer magazine for slot players and the gaming industry; Casino Journal, the leading trade magazine for the gaming industry; Nevada Hospitality, the official magazine of the Nevada Hotel/Motel & Restaurant Association; The National Gaming Summary, The Gaming Industry Weekly Report, The Gaming Industry Daily Report, The Gaming Sector, ... Yesterday, Today and Tomorrow, The Daily Lodging Report and the Atlantic City Insider newsletters.
In addition, the Company produces The American Gaming, Lodging and Leisure Summit in conjunction with Bear Stearns & Co. and the leading Nevada law firm of Lionel Sawyer & Collins; The Southern Gaming Summit with the Mississippi Casino Operators Association; The Atlantic City Chamber of Commerce Business Expo and UNLV's Casino Ops trade shows.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to the following risks and uncertainties which could cause actual events to differ from anticipated events: competition, economic fluctuations, a change in consumer tastes and competition within the gaming industry. There is no guarantee that a firm offer for the transactions discussed above will be received or that the offer will be acceptable. Additional risk factors can be found in the Company's filings with the Securities and Exchange Commission
SOURCE: Casino Journal Publishing Group, Inc.
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