Labatt And Baymount To Strike Deal?

Published: November 4, 2009 04:46 pm EST

According to a release this afternoon from Baymount Incorporated, further progress is being made towards completing due diligence on its previously announced transaction with Plaza Gaming and Entertainm

ent Corp., whereby Plaza will acquire a 75 per cent equity interest in the new Quinte Racetrack and Slots facility in Belleville, Ont. for a gross investment of $6 million.

Both parties are currently amenable to extending the closing date and remain committed to working through final due diligence items and closing the transaction as expeditiously as possible. Further details regarding closing schedules will be announced once determined.

In addition to this progress, Baymount is pleased to announce additional agreements relating to the development of QRS and its related facilities.

First, Baymount has announced that it has entered into an agreement with Labatt Brewing Company Limited whereby Baymount has granted Labatt a 90-day exclusive to review the opportunity of establishing a sponsorship and branding presence at the QRS and/or on Baymount's 55 acres of excess lands that are to be used for the development of the Prince Edward Gateway family entertainment destination, which plans to feature a new hotel and water park, in addition to many other amenities.

With respect to the excess lands, Baymount has also announced that CB Richard Ellis has been retained to develop a feasibility study for the hotel and water park development that is proposed for this site. Baymount continues to hold a 100% interest in these excess lands, which are adjacent to the new QRS in Belleville, Ontario. These lands are not part of the transaction with Plaza and the Company continues to work with its prospective partners in developing these lands into the Prince Edward Gateway family entertainment destination.

Graham Simmonds, president and CEO of Baymount stated, "This past month we have made substantial progress in working through the facility designs, construction costs and budgeting of the QRS and the Prince Edward Gateway family entertainment destination. We have also had a number of very positive meetings with stakeholders and there remains tremendous support towards completing this transaction and beginning the next phase of development for our projects."

Baymount has further advised that it will not be proceeding with its previously announced unit offering for gross proceeds of up to $2,000,000 at this time.

(With files from Baymount)

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Comments

Said it before and will again...something sick and wrong with the Baymount deal. What's the Ag society and city doing? Didn't Rollins say that he had enough and that there had better be shovels in the ground by Sept or he would do something. Has anyone else noticed that there is an unnatural smell eminating from this fiasco? So far the big loser is the local race fans and horsemen. Time for the bad boys to take a hit too!

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