Poydras Gaming Finance begins trading on TSX-V
2014-05-13 10:39 ET - News Release
Shares issued 17,780,434
Mr. Peter Macy reports
POYDRAS GAMING FINANCE COMMENCES TRADING ON TSXV
Poydras Gaming Finance Corp.'s shares commenced trading on the TSX Venture Exchange on May 13, 2014, under symbol PYD following the completion, on May 9, 2014, of its reverse takeover of Great Northern Gold Exploration Corp. Concurrent with the reverse takeover, the company has completed a share offering of 13.38 million shares at a price of 25 cents per share for gross proceeds of $3,345,000, and the company also completed its debenture offering of 11-per-cent secured convertible debentures at an offering price of $1,000 (U.S.) per convertible debenture for gross proceeds of $7,732,000 (U.S.). The convertible debentures will trade under the symbol PYD.DB.U. Please refer to the company's press release dated May 9, 2014, for additional details about the reverse takeover and concurrent offerings.
"Slot machines are a major driver of casino revenues, generally accounting for 70 per cent to 90 per cent of total revenues in regional casinos," said Peter Macy, chief executive officer of Poydras Gaming. "There are approximately 900,000 slot machines in the United States, with less than 6 per cent of slot machines on the Las Vegas Strip. Poydras Gaming is well positioned to be a leader in the gaming finance industry, particularly to underserved regional operators."
Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. It owns and finances slot machines, including long-term lease contracts across four casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California. The company intends to expand its operations in Oklahoma and California, as well as enter into new markets. It currently has 282 gaming machines placed in casinos, along with existing contracts to allow it the opportunity to place an additional 217 gaming machines in 2014 for a total number of 499 deployed and deployable machines.
Poydras Gaming intends to use the proceeds from the financings to expand its existing operations, which will primarily be achieved by improving access to capital by lowering its cost of funds and thus increasing the flexibility of the financing products that can be offered to its customers. In addition, Poydras Gaming intends to use the proceeds from the financings to acquire additional placements of gaming machine leases, including at least two new placements in Oklahoma casinos by Dec. 31, 2014. The company is also reviewing the expansion of operations into Louisiana and Mississippi in the next two years.
The company has appointed to its board of directors the following directors.
Peter Macy, the chief executive officer of Poydras Gaming Finance, has over 15 years of experience as a private equity investor, investment banker and corporate development professional. Prior to co-founding Poydras Gaming in 2013, Mr. Macy was a partner at Poydras Capital Partners LLC, a private equity investment firm focused exclusively on the gaming industry. Mr. Macy started his investment banking career at J.P. Morgan before working as a senior vice-president at Wells Fargo Securities. Mr. Macy holds a BA in international politics and economics from Middlebury College and an MBA from the University of California, Berkeley.
Daniel Davila, the president of Poydras Gaming Finance, is a veteran executive in the gaming industry. Mr. Davila is the founding member of the Foundation Gaming Group (formerly the Jay Daniel Company), and was the chief financial officer and treasurer of Torguson Gaming Group, and senior vice-president and senior equity analyst at Sterne Agee & Leach. Mr. Davila holds a BBA from the University of St. Thomas and an MBA from Columbia University.
Michael Rumbolz has extensive experience as both an executive and regulator in the gaming industry around the world, and is a member of the board of members of Seminole Hard Rock Holdings as well as a member of the board of directors of Employers Holdings Inc. and Global Cash Access. Mr. Rumbolz was previously chairman and chief executive officer of Cash Systems Inc. and director and manager of the compliance committee of Affinity Gaming, as well as serving as president and chief executive officer of Anchor Gaming Inc. Mr. Rumbolz also served as a member and, subsequently, the chairman of the Nevada Gaming Control Board and is the former chief deputy attorney general of the State of Nevada.
Prakash Hariharan, former portfolio manager for Front Street Capital, is an experienced and active manager of growth portfolios with a focus on technology. Mr. Hariharan is also chairman of Analytixinsight, board member of Wi2Wi Corp. and Aquia Resources, and holds a financial engineering (mathematical finance) degree and an MBA from York University.
Kim Oishi has over 20 years of experience in financing and advising growth companies, and has served in senior management and board positions on a number of public and private companies. Mr. Oishi is founder and president of Grand Rock Capital Inc., a company that invests in growth companies and provides consulting services for investor relations, corporate finance, business development, and mergers and acquisitions for companies listed on the TSX, and is currently director and chief executive officer of KCO Capital Inc. Mr. Oishi holds a bachelor of science degree and an MBA from the University of British Columbia.
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