AGM was excellent. JV deal very close. Green lights for all projects.
Someone in the meeting must have decided that because the signing of the JV deal was not announced they needed to put in a market sell order - either that or one of our small friends decided to try and run the market down a little. If anyone wants a bargain, now's your chance. Notice there was very little volume.
Everything is looking good. The Michigan deal is down to the short strokes and Hans and the rest were clearly itching to say something about it but did not want to prejudice the negotiations at this point. We were assured that the deal will be completed, and as Berger has just said about the U.S. and Iraq - it won't be days, and it won't be months. From the degree of caution that was being exercised (except for saying that the deal will be concluded) I would say there is no doubt that the deal is at a final sensitive stage. The comment period expired and no comments were received.
There was a representative (owner) from the South Korean Shin-Do Island project present. He is here to participate in a presentation by Anderson Consulting of the final feasibility study for the massive Shin-Do Island project. This study will assist in procuring financing, creating plans, and obtaining licenses. David told us that the Korean gov't. is moving quickly ahead with economic reforms. The new gov't. is very favourable towards permitting gaming and wants to encourage foreign investments. Discussions with potential financiers have been occurring. An eight lane highway to Shin-Do Island will be completed in 1999, and the first phase of the biggest airport in Asia will be completed in 2000. This project has definitely received a boost from the new gov't.
Richmond Downs will be presented to the Richmond City Council in early March; first to a technical committee and then to the whole council. Kim gave us an overview of the whole project and it is stunning. Consultants have been employed to assist in various phases of the project such as land use regulations, urban planning, and government liaison. The recent shifts in the BC gov't. have resulted in a head of gaming who has indicated a willingness to work with Sungold. Representatives of BC horsemen's associations were present at the meeting, and it is clear in many ways that the time has come for a new racetrack in association with a small stakes gaming facility.
Ted Carter was present and asked Don Harris whether TAC Investments will extend its commitment to buy 4 million shares at $6, or about $35 million Cndn.. Don answered that definitely, yes, TAC will make the investment as soon as the project gets gov't. approval. There were indications that racetracks have always been considered an agricultural business, so the question of rezoning the land appears to be resolvable. It is possible that Sungold may be able to arrange complete internal financing and thus retain total ownership.
Hans was in fine form; healthy and in good spirits. Kim presented very well, and shareholders should be pleased that someone with his strong public presence, intelligence, and verbal skills will be presenting the Richmond Downs project. He clearly has extensive knowledge of horse racing, gaming, civic consultation, and has the respect and support of the horsemen's associations.
This is the gaming development business. If waiting for negotiations to conclude makes you too impatient, or if you loose sleep worrying about regulatory stages, then give your shares to someone who wants them. Most of us know very well that the development process is not a series of perfectly measured easily visible steps. Far more work is going on behind the scenes than meets the eye. The company is smart enough not to prejudice potentially immense future benefits by a few poorly timed announcements. This is not a company that is going to fool around with the games that some other companies play of too much hype and too little substance. There are very few, if any gaming development companies that have been as successful as Sungold in bringing such high quality projects to advanced stages of development.
On top of being encouraged by the ongoing work, some of us had a very good time enjoying each other's company and getting to know the people behind the names on SI. And for those who are interested, Roger B. and I had a heck of a good time together. It seems we have the same interests at heart. |
