Baymount Incorporated announced today that it has entered into a letter of intent with Plaza Gaming and Entertainment Corp. whereby Plaza will acquire
a 75 per cent equity interest in Baymount's new Quinte Racetrack and Slots facility (QRS) in Belleville, Ont.
The use of proceeds for the investment will be to satisfy the balance of the capital requirements to complete the construction of the new QRS and to make payments to Baymount's convertible debenture holders. Baymount will also be entitled to receive a bonus payment based on the future performance of the new QRS. The transaction is subject to due diligence and is scheduled to close on or about September 30, 2009.
The transaction remains conditional upon Plaza completing its due diligence to its satisfaction and to regulatory approvals, which include but are not limited to those of the Alcohol and Gaming Commission of Ontario and the Ontario Racing Commission.
"We believe Plaza Gaming and Entertainment will be an exceptional partner as they have a broad range of gaming and entertainment industry experience both in Ontario and elsewhere," stated Graham Simmonds, president and CEO of Baymount. He added, "While we are committed to now focusing on completing the construction of this exciting new facility, we are also hopeful that this strategic alliance will result in additional opportunities for Baymount."
Baymount will continue to hold 100 per cent of the 55 acres of excess lands adjacent to the new QRS in Belleville. Baymount continues to work with its prospective partners in developing these lands into the Prince Edward Gateway family entertainment destination, which plans to feature a new hotel and water park in addition to many other amenities. Baymount expects to release further disclosure on these developments over the coming weeks.
(With files from Baymount)