Deal includes 6.99 million shares issued to Kien Huat Realty III
By Susanna Moon
Chicago, Feb. 9 – Empire Resorts, Inc. said it completed the rights offering for $50 million Friday, reaching the targeted amount. The company announced plans on Jan. 5.
The company issued 7,042,254 shares of common stock at $7.10 each, which included 53,291 shares issued to holders upon exercise of their basic subscription rights and 4,321,798 shares issued to Kien Huat Realty III Ltd., the company’s largest stockholder, upon exercise of its basic subscription rights.
Kien Huat also acquired the remaining 2,667,165 shares not sold in the rights offering under the terms of a standby purchase agreement, according to a company press release.
After the rights offering, Kien Huat will own about 67% of the outstanding shares of the company's common stock.
As previously announced, the price is a 6.46% discount to the closing share price of $7.59 on Jan. 2.
Investors received one right for every 5.6 common shares held, or into which their series B preferred shares are convertible on Jan. 2.
Proceeds will be used to obtain a gaming facility license and for operations.
Empire Resorts is a Monticello, N.Y., operator of the Monticello Raceway.
| Issuer: | Empire Resorts, Inc.
|
| Issue: | Common stock
|
| Amount: | $50 million
|
| Shares: | 7,042,254
|
| Price: | $7.10
|
| Warrants: | No
|
| Investor: | Kien Huat Realty III Ltd. (for $49,621,637)
|
| Pricing date: | Jan. 5
|
| Settlement date: | Feb. 6
|
| Stock symbol: | Nasdaq: NYNY
|
| Stock price: | $7.59 at close Jan. 2
|
| Market capitalization: | $289.16 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
