Nevada Gold & Casinos, Inc. announced the signing of a definitive agreement to acquire the Club Fortune Casino in Henderson, Nevada for $14.2 million in cash and 1.2 million shares of the Company's common stock, exclusive of working capital adjustments. It is anticipated that the acquisition, which should be immediately accretive to earnings, will be financed with an expansion of the Company's existing credit facility. Closing is subject to customary contingencies, including approval by the Nevada Gaming Commission.
The acquisition of Club Fortune will expand the geographic diversity of the Company, which upon closing will operate in Washington State, South Dakota and Nevada. The Company anticipates the closing to occur in the third quarter of its 2016 fiscal year ended April 30, 2016.
"This is an outstanding opportunity to acquire a quality casino operation with excellent growth potential, an experienced work force and a dedicated clientele," stated Michael Shaunnessy, President and CEO of Nevada Gold & Casinos. "We are especially pleased that Carl Giudici, owner of Club Fortune, with nearly 29 years of experience with Nevada casinos, will continue his involvement with the Company as a consultant and shareholder."
"I have been very impressed with the capability of management and the Board of Directors of Nevada Gold which was a major factor in my decision to sell the Club Fortune Casino to the Company," said Carl Giudici. He added "with this acquisition, Nevada Gold has established a solid foundation for future growth and success which should benefit all shareholders, including myself."
Club Fortune generated $16.0 million in net revenues and $2.4 million in Adjusted EBITDA in 2014. It has approximately 25,000 square feet of gaming space, over 500 slot machines and 12 table games, including a poker room. The facility also has a restaurant, two bars, an entertainment lounge, snack bar and gift shop.