Monday December 1, 4:12 pm Eastern Time
Company Press Release
Sungold Gaming International Ltd. - Letter of Intent for Financing/Management of Michigan Project
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 1, 1997-- Hans R. Banziger, the President of Sungold Gaming International Ltd. (''Sungold'') reports:
Letter of Intent for Financing/Management of Michigan Project Sungold and Excelsior Gaming Inc. (''EGI'') of Willimantic, Connecticut and Premier Gaming Ventures Inc. (''PGV'') of Boston, Massachusetts have signed a letter of intent with regard to the joint development and management of Sungold's proposed Casino/Entertainment Project (''the project'') in Southeast Michigan.
The letter of intent provides for the formation of a joint venture between EGI and PGV (''the J.V. Partners'') and the execution of definitive agreements by and between Sungold, the J.V. Partners and the Gun Lake Tribe, to be finalized prior to December 31, 1997. Under the provisions of the participation agreement Sungold will receive one third of the gross management fees as agreed upon with the Tribe and approved by the National Indian Gaming Commission.
EGI's chairman and CEO Mr. Bruce Einhorn has over 20 years of gaming industry experience gained in senior management positions with the Mirage and the Golden Nugget Hotel and Casino in Las Vegas, and the Showboat Hotel and Casino in Atlantic City. In his capacity as vice president of casino operations for Foxwood's Casino, Mr. Einhorn's responsibility included all aspects of creating what has become the largest casino operation in the Western Hemisphere. EGI represents an ideal fit for Sungold as EGI is experienced in Indian law, gaming law, IGRA, and the regulatory process.
PGV is working with the Lone Star Opportunity Fund an equity investment fund headquartered in Dallas, Texas for the funding of the project. The Principals of Lone Star have played significant roles in the acquisition of mortgage and real estate assets, with an aggregate book value of approximately $5.7 billion dollars.
Upon the execution of final documents, the J.V. Partners will assume responsibility for:
o The development and operation of the project
o The financing of the project
o The funding of all pre-development costs associated with the
project (including Sungold's obligations under its current
agreement with the Gun Lake Band) and
* The reimbursement of Sungold for all its monies expended in
connection with the project to date, prior to commencement
of casino construction.
Operating Capital
The Sungold warrant holders have expressed a desire to exercise their warrants which will provide Sungold with $575,000 in additional working capital.
Jeffrey D. Paquin vs. Sungold
The legal action commenced by J.D. Paquin against Sungold, as reported in Sungold's news release of June 20th, 1997 has been dismissed.
Trading Halt
The VSE initially ordered a halt in trading of Sungold's shares under the provisions of its Change of Business (COB) Policy, after concluding that Sungold's gaming projects have advanced to the point where many of the essential elements of the COB Policy apply.
The VSE then insisted that Sungold retain a sponsoring Member firm to provide the VSE with a Reporting Letter and to present an independent report to its Pre-Listing Advisory Committee (PLAC).
The VSE then rejected the formal recommendations submitted by Sungold's sponsor, Merit Investment Corporation (Member of TSE, MSE, VSE and ASE) for the re-listing of Sungold's shares.
Merit's endorsement of Sungold is based on and supported by the results of a thorough analysis of all of Sungold's operations; a review of Sungold's agreements and of the parties to the agreements; an outline of gaming permit processes and an outline of business risks. Merit has been assisted in its due diligence process by independent legal firms in Seoul, Korea, Michigan, Toronto and Vancouver and by the results of a Feasibility Study for the proposed Michigan Casino Project prepared by MARQUETTE Advisor of Minneapolis and an independent assessment of the South Korean Gaming Market prepared by KPMG Peat Marwick of Los Angeles. In addition, the VSE was provided with a detailed Business Plan and an up to date Filing Statement for Sungold. Although the VSE complemented Merit on the thoroughness and completeness of its review and documentation, the VSE arbitrarily decided to disregard the facts presented by Merit and issued a brief defamatory statement contrary to the conclusions of the Merit report, in complete disregard for Sungold's three thousand shareholders.
Listing on NASDAQ - OTC Bulletin Board/Trading Symbol: SGGNF Sungold, through its market maker, is currently seeking clearance from the NASD for the listing and trading of its shares on the OTC Bulletin Board. Sungold will delist from the VSE.
For more information please contact Kim N. Hart, at (604) 222-3155
SUNGOLD GAMING INTERNATIONAL LTD. per. (SIGNED) Hans R. Banziger, President
NOTE TO EDITORS: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. |
