Business
Century Casinos Enters into Definitive Agreement to Sell Casino Operations of Century Casino Calgary
COLORADO SPRINGS, Colo., Aug. 5, 2020 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) ("Century Casinos" or the "Company"), announced
About this update from Century Casinos, Inc.
[{"type":"text","content":"COLORADO SPRINGS, Colo., Aug. 5, 2020 /PRNewswire/ -- 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. \n\n \n \n \n \n \n \n\n \nThe 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.\nThe 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.\n\"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.\nThe 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.\nAbout Century Casinos, Inc.:\nCentury 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....