CPE News (8/5/2020) – Century Casinos, Inc. (NASDAQ: CNTY) announced today that its subsidiary Century Resorts Alberta, Inc. (CRA) has entered into a definitive agreement to sell the casino operations of Century Casino Calgary to 2267166 Alberta Ltd. for CDN $10.0 million, plus a three year quarterly earn-out as specified in the agreement.
The non-refundable CDN $10 million was paid at the execution of the definitive agreement.
Century Resorts Alberta will continue to operate Century Sports (sports bar, bowling and entertainment) and to own the real estate. CRA will enter into a lease agreement with 2267166 Alberta for the Calgary premises. The lease will have an annual net rent of approximately CDN $480,000 and a term of three years.
2267166 Alberta is an affiliate of New Star Capital is a private family-owned holding company that invests in Western Canadian businesses. New Star Capital is a part-owner of Jackpot Casino in Red Deer, Alberta.
photo credit: Century Casino Calgary
Century Casinos Enters into Definitive Agreement to Sell Casino Operations of Century Casino Calgary
COLORADO SPRINGS, Colo., Aug. 5, 2020 /CNW/ — Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) (“Century Casinos” or the “Company”), announced today that its subsidiary Century Resorts Alberta, Inc. (“CRA”) has entered into a definitive agreement to sell the casino operations of Century Casino Calgary (“Calgary”) to 2267166 Alberta Ltd. (the “Buyer”) for CAD 10.0 million ($7.5 million based on the exchange rate on July 31, 2020) plus a three year quarterly earn out as specified in the agreement.
The CAD 10.0 million was paid at the execution of the definitive agreement and is non-refundable, except as described in the Agreement, but subject to working capital and other adjustments. CRA will continue to operate Century Sports (sports bar, bowling and entertainment) and to own the real estate.
The Agreement contemplates that CRA will enter into a lease agreement with the Buyer for the Calgary premises. The lease will have an annual net rent of approximately CAD 480,000 ($358,102 based on the exchange rate on July 31, 2020) and a term of three years.
“This transaction immediately strengthens our balance sheet,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The Calgary casino is one of our smaller operations, contributing $8.4 million in net operating revenue and $1.2 million in Adjusted EBITDA (approx. half from the casino operations we are selling and half from sports bar, bowling and entertainment operations we will continue operating) in 2019,” Haitzmann and Hoetzinger concluded.
The transaction, which is expected to close in fall 2020, is subject to approval by the Alberta Gaming, Liquor and Cannabis Commission, but the CAD 10.0 million payment already made to Century Casinos is non-refundable except as described in the Agreement.
About Century Casinos, Inc.:
Century Casinos, Inc. is a casino entertainment company. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino Cape Girardeau and Caruthersville, Missouri, in Calgary and St. Albert, Alberta, Canada; Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century Mile Racetrack and Casino (“CMR”) in Edmonton, Alberta, Canada; and Century Bets! Inc. (“CBS”). CBS and CMR operate the pari-mutuel off-track horse betting networks in southern and northern Alberta, respectively. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the operator of eight casinos throughout Poland; and, a 75% ownership interest in each of Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The Company operates one ship-based casino. The Company, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina. The Company continues to pursue other projects in various stages of development.
Century Casinos’ common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit our website at www.cnty.com.
SOURCE Century Casinos, Inc.
For further information: Company Contact: Peter Hoetzinger, Co CEO & President, +1 719 689 5813, +43 664 355 3935, Peter.email@example.com, http://www.cnty.com