22:04:15 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Great Canadian Gaming Corp
Symbol GC
Shares Issued 69,713,905
Close 2015-05-11 C$ 22.93
Market Cap C$ 1,598,539,842
Recent Sedar Documents

Great Canadian Gaming to buy Casino New Brunswick

2015-05-12 07:12 ET - News Release

Mr. Rod Baker reports

GREAT CANADIAN GAMING ANNOUNCES AGREEMENT TO PURCHASE CASINO NEW BRUNSWICK

Great Canadian Gaming Corp. has agreed to purchase the assets and undertaking of Casino New Brunswick from Sonco Gaming New Brunswick LP, the general partner of which is Sonco Gaming New Brunswick Ltd., for approximately $95-million. The company's acquisition, which will be financed by existing cash balances, will include ownership and operation of CNB's existing casino, hotel, and a multiuse entertainment and convention centre. CNB, located in Moncton, N.B., was developed by Sonco and commenced operations in May, 2010. In 2014, the facility, which is the only full-service casino in the province of New Brunswick, generated approximately $38-million in revenues. The purchase price represents an acquisition multiple of approximately 8.0 times to 8.5 times the casino's 2014 normalized earnings before interest, taxes, depreciation and amortization.

"The acquisition of Casino New Brunswick represents an important opportunity for value creation and will allow Great Canadian to further expand its Canadian footprint," stated Rod Baker, the company's president and chief executive officer. "We are very much looking forward to the potential of working with the New Brunswick Lotteries and Gaming Corp., the Department of Public Safety gaming control branch, and the City of Moncton. Casino New Brunswick is a high-quality gaming and entertainment facility that serves as both a local casino for guests from Moncton, as well as a destination casino for guests from throughout New Brunswick and from other areas of Atlantic Canada. We are extremely excited at the prospect of welcoming CNB and its over 400 employees to the Great Canadian team."

The casino service provider agreement with New Brunswick Lotteries and Gaming operates until Dec. 31, 2030. The purchase and sale of CNB remain subject to the consent of New Brunswick Lotteries and Gaming and required regulatory approvals. The closing is expected to occur in the fall of 2015.

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