After revealing last month that it was in “exclusive discussions” to sell the company, on Tuesday Las Vegas-based Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) announced that it had signed an agreement with Maverick Casinos, LLC (“Maverick”) for the sale of all of the company’s outstanding shares of stock for a cash consideration of $2.50 per share, subject to minor adjustments.
According to the official press release…
As a result of the transaction, the privately-held company will get nine casinos in the state of Washington, with a small Henderson, Nevada casino to be sold separately.
Along with the Washington casinos, Nevada Gold also owns Club Fortune in Henderson, which is reportedly under contract to be sold to Truckee Gaming.
The transaction is subject to approval of Nevada Gold shareholders, applicable gaming authorities, completion of the sale of the Company’s Club Fortune casino and other customary closing conditions. The transaction has already been given the green light by Nevada Gold’s board.
Eric Person is the Manager of Maverick while an affiliate of the company owns the Red Garter Hotel & Casino and the Wendover Nugget Hotel & Casino in Wendover, Nevada, as well as various other assets.
According to the news release, the transaction will be funded primarily with debt financing from Nevada State Bank with equity financing from Maverick. A financing condition is not part of the deal.
Chairman of Nevada Gold, William Sherlock said…
“Our goal was to obtain the highest value in a sale of the Company. We believe the transaction announced today achieves our objective and provides immediate cash consideration for our shareholders.”
The companies expect the transaction to be finalized by the end of this year.