Shareholders received one right for every 5.6 common shares held
By Devika Patel
Knoxville, Tenn., Feb. 18 – Empire Resorts, Inc. completed a $290 million rights offering on Feb. 18, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced for $50 million on Jan. 5.
The company issued 20,138,888 common shares at $14.40 each, an 89.72% premium to the closing share price of $7.59 on Jan. 2. The sold stock included 176,086 shares issued to holders upon exercise of their basic subscription rights and 13,136,817 shares issued to Kien Huat Realty III Ltd., the company’s largest stockholder, upon exercise of its basic subscription rights.
Kien Huat also acquired the remaining 6,825,985 shares not sold in the rights offering under the terms of a standby purchase agreement.
The rights were originally to be sold at $7.10 apiece. Investors received one right for every 5.6 common shares held, or into which their series B preferred shares were convertible, on Jan. 2.
Proceeds will be used for development of the Montreign Resort Casino, to redeem the company’s series E preferred stock, develop the Golf Course and Entertainment Village and for working capital needs.
Empire Resorts is a Monticello, N.Y., operator of the Monticello Raceway.
| Issuer: | Empire Resorts, Inc.
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| Issue: | Common stock
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| Amount: | $290 million
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| Shares: | 20,138,888
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| Price: | $14.40
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| Warrants: | No
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| Investor: | Kien Huat Realty III Ltd. (for $287,464,349)
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| Pricing date: | Jan. 5
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| Settlement date: | Feb. 18
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| Stock symbol: | Nasdaq: NYNY
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| Stock price: | $7.59 at close Jan. 2
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| Market capitalization: | $167.13 million
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