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Great Canadian Gaming Completes Orangeville Raceway Acquisition21 March 2005
RICHMOND, British Columbia – (PRESS RELEASE) -- Great Canadian Gaming Corporation (the "Corporation") (TSX:GCD) is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of Orangeville Raceway Limited ("Orangeville"), which operates two standardbred racing facilities in British Columbia: Fraser Downs Racetrack & Casino in Surrey and Sandown Park in North Saanich on Vancouver Island.
Pursuant to the purchase agreement, consideration paid by the Corporation for the shares of Orangeville was C$40,000,000, plus the assumption of certain shareholder loans of approximately C$2.5 million (the "Purchase Price"). In addition, the Corporation agreed to trailer payments for a period of up to four years following the closing date based on exceeding the present annual net gaming and racing revenues of the acquired operations. Included in the purchase price is a Facility Development Improvement Fund ("FDIF") receivable of approximately C$15 million that will be repaid to the Corporation by the British Columbia Lottery Corporation over time. The acquisition of Orangeville will allow the Corporation to pursue various synergies and complements the Corporation's recent acquisition of Hastings Racecourse in Vancouver. As a result of these acquisitions, the Corporation will be the largest thoroughbred and standardbred racing operator in British Columbia and will be able to operate year round horse racing and related activities.
About Fraser Downs Racetrack & Casino
Fraser Downs Racetrack & Casino currently offers live standardbred horse racing nine months of the year. The casino currently operates 365 days a year and features a sports bar and 420 state-of-the-art gaming machines including Touch Bet Roulette, Electronic Blackjack and interactive slot machines.
Fraser Downs commenced a C$30 million expansion in fall 2003 that introduced 200 slots in temporary facilities in April 2004. In November 2004 the permanent slot facility was completed featuring 400 slots and 20 electronic gaming positions. The final phase scheduled for completion in Q2 2005 will include a gaming floor with 420 gaming machines, a new simulcast area, modern atrium-styled welcome center and a major show lounge with state-of-the-art audio-visual technology.
Surrey is British Columbia's second largest city and is one of the fastest growing major cities in Canada and with two major Canada/United States border access points. Great Canadian previously operated a casino facility in Surrey for over 15 years and is excited about the opportunity to return to one of the largest cities in British Columbia. The Fraser Downs facility has seen increased traffic and visibility with the opening of the second phase of the casino floor in November 2004.
About Sandown Park
Sandown Park is the only live horse racing facility on Vancouver Island and has operated for approximately 50 years. This facility is located within the District of North Saanich which is within the Capital Regional District of Victoria and within five minutes of the BC Ferry Terminal and Victoria International Airport. Sandown operates approximately twenty live race days per year and features simulcast off-track wagering Wednesday through Sunday all year round. In November 6, 2004 a referendum of North Saanich voters supported the installation of up to 200 slot machines at Sandown, such installation being subject to the standard development permit approval process.
About Great Canadian Gaming Corporation
Great Canadian Gaming Corporation, home to more than 3,500 employees, is a multi-jurisdictional gaming and entertainment operator. Within British Columbia, the company operates six casinos, a thoroughbred racecourse, two standardbred racecourses, a community gaming centre, numerous licensed restaurants and a marina operation. In Washington State, through Great American Gaming Corporation, the company operates four gaming and restaurant / entertainment facilities.