Gamehost Income Fund (TSXV: GH.UN)
RED DEER, AB, April 10 /CNW/ - Gamehost Income Fund ("Fund") is pleased to report that it has received conditional approval from the Toronto Stock Exchange ("TSX") to list trust units of the Fund on the TSX. Listing on TSX is subject to meeting the requirements of the TSX. Prior to the listing of trust units of the Fund on the TSX the Fund will split all classes of existing units on a 3 for 1 basis. Trustees of the Fund have also approved a 10 percent increase to regular monthly cash distributions of the Fund from $0.2000 per unit to $0.2199 per unit effective the April 2008 distribution period.
Craig Thomas, CFO reports, "Heading into calendar 2008 the Fund was faced with a number of risk factors that could not be fully assessed at the time. Lingering uncertainty in commodity markets, new casino competition in the Calgary market place and a province wide smoking ban effective January 1, 2008 all held potential for an adverse effect on operations. With Q1 2008 behind us, management now has a clearer picture of the impact of these factors and is confident in the sustainability of higher regular cash distributions from the Fund."
The Fund will affect a 3 for 1 unit split by issuing 2 additional units for every 1 unit currently issued of all classes of units of the Fund. There are currently 3,591,051 issued and outstanding trust units of the Fund. Immediately following the split issued and outstanding trust units will total 10,773,153. Post split valuation for the Fund's trust units will ultimately be determined by the market. Resulting valuations should, however, approximate 1/3rd of the pre-split trading value. The Record Date and the Ex-Trading Date for the split will be announced once they are known. It is anticipated that the additional units will be issued and the resulting revaluation of units will occur before the end of April 2008.
On April 2, 2008 the Fund received conditional approval from the TSX on its application for graduation from the TSX Venture Exchange ("TSXV") to the TSX. The Fund is currently in the process of forwarding documentation to satisfy remaining requirements of the TSX. The TSX has confirmed that the Fund's units will continue to trade under the symbol "GH.UN" once listed on TSX. Listing and the start of trading of trust units of the Fund on the TSX will occur following the successful unit spilt while units are still trading on the TSXV. Dates will be communicated once bulletins have been released by either the TSX or the TSXV, as applicable. The Fund's units have traded on the TSXV since June 3, 2003 appreciating from an initial price of $10.00 per trust unit to a current trading range of +/- $38.00 per trust unit. Since inception in 2003 the Fund has paid out $11.405 per unit in cash distributions representing a payout ratio of approximately 94% of Standardized Distributable Cash.
Darcy Will, VP comments, "Our existing unitholders know our story is a great one. However, to the rest of the investment community, Gamehost is a virtual unknown. Graduation to the larger Toronto Stock Exchange is an initial step to create wider awareness of the Fund. Furthermore, our Trustees believe splitting all existing units will encourage wider distribution among retail investors and ultimately improve liquidity issues expressed by some members of the investment community."
This press release may contain forward-looking statements. Forward-looking statements may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans" or other similar expressions that suggest future outcomes or events. Use of these statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.
Gamehost Income Fund is an unincorporated open-ended limited purpose trust established under the laws of the Province of Alberta. The Fund's activities are currently confined to the Province of Alberta, Canada. Operations of the Fund include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and a strip mall all located in Grande Prairie. The Fund is also a 40% joint venture partner in Deerfoot Inn & Casino Inc. in Calgary and a 20% partner in the new Stampede Casino in Calgary that is scheduled to open in June 2008.
The TSX and the TSXV Exchanges do not accept responsibility for the
adequacy or accuracy of this release.
Complete disclosure of the Fund can be found on SEDAR at www.sedar.com. Additional information on the Fund can be found on the Fund's website at www.gamehost.ca.
%SEDAR: 00019487E