In an unrelated event, Colonial Holdings' Board of Directors agreed today to an amendment to the merger agreement among Colonial Holdings, Gameco, Inc., Gameco Acquisition, Inc. and Jeffrey P. Jacobs. Pursuant to the amendment, Colonial Holdings agreed to extend the closing date of the proposed merger from no later than December 31, 2001 to no later than April 1, 2002. In exchange for the extension, Gameco and Mr. Jacobs agreed to increase the offering price for shares of Colonial Holdings from $1.10 to $1.12 per share and to provide up to $300,000 of working capital (in addition to the $1 million committed thorough December 31, 2001) to Colonial Holdings for the first quarter of 2002.
Consummation of the merger remains subject to certain conditions, including approval by Colonial Holdings' shareholders. Shareholders will be asked to vote on the merger agreement at a special meeting of shareholders, which is tentatively scheduled for January 3, 2002. The record date for such meeting is November 26, 2001. Colonial Holdings will file and mail to its shareholders, a definitive proxy statement describing the proposed merger. Shareholders are urged to read the proxy statement carefully before making a decision. If the merger is consummated, Colonial Holdings will become a wholly owned subsidiary of Gameco, and will cease to be a public company. Gameco is an entity controlled by Jeffrey P. Jacobs, Chairman of the Board and Chief Executive Officer of the Company. |
