Gamehost Inc T.GH

GCG now operated and owned by Americans...

[malx1]

A gem of a company that should have been held by Canadians for decades to come.  Even a takeover by large Canadian pension funds would have been better than this outcome.  This kind of shenanigans happens when you have clown management teams who issue themselves mega options packages and own no shares.  Very disappointing to see these properties exit Canadian hands. 

Apollo may be sniffing at GH next.  Fortunately management and insiders own close to 40%+ of Gamehost.  You can't attack this company when "the Great Wall of Gamehost" is manned by experienced owners/operators. 

If we see uptick in trade volume for GH, it could be some GC takeover refugees looking for quality exposure to entertainment sector. 

Alberta economy showing green shoots and it's not even spring yet!!





https://www.stockwatch.com/News/Item/Z-C!GC-3143326/C/GC

Globe says Apollo closes deal to buy Great Canadian

 

2021-09-23 07:51 ET - In the News

 

The Globe and Mail reports in its Thursday, Sept. 23, edition that Great Canadian Gaming plans to add Las Vegas-style shows and celebrity chefs to the casino experience after hiring veteran U.S. gambling executive Tony Rodio as its new chief executive officer. The Globe's Andrew Willis writes that on Wednesday, U.S. private-equity firm Apollo Global Management closed its $2.48-billion acquisition of Great Canadian and announced Mr. Rodio, formerly CEO of Caesars Entertainment and two other casino operators, will take the reins. Great Canadian parted ways with then-CEO Rod Baker in January after he and his wife were caught jumping the line for COVID-19 vaccines by travelling to Yukon and pretending to be workers at a local motel. Terrance Doyle, who served as Great Canadian's interim CEO after Mr. Baker's departure, is now the company's president of business development. Through the first six months of this year, Great Canadian lost $71.2-million. Great Canadian's growth strategy as pandemic restrictions are lifted includes enhancing the non-gambling experience at its properties by bringing in music acts and improving restaurants. The company also plans to ramp up on-line gambling platforms.

© 2021 Canjex Publishing Ltd. All rights reserved.

[TheBridge]

Malx1, thanks for the info updates I hadn't seen or was aware of them but important to be aware of this.

[malx1]

Under normal market conditions, capital would flow freely between corporations of similar quality, size, sector, region etc.   In the case of GC being acquired, I had expected more money to move into Gamehost as those who owned Great Canadian Gaming looked to continue their exposure to the entertainment sector.  Gamehost shares should have rallied a little on the takeover news and

[cpeczek]

Here is hoping they shape up GC then spin it off down the line. Gamehost must have some smart money looking into acquiring the properties considering the oil price turn around but the tight insider ownership may scare off potential bidders. Great Canadian was sold out by their institutional shareholders looking for the quickest profit possible. Gamehost would be a tough sell. The share price

[BarstoolSage]

Appolo (GCG) and Catalyst Capital (Gateway Casinos) are both owners that have exit plans. Private equity capital makes the company better and more valuable then spins it out...to some other owner or goes for another staged IPO Gateway went private in 2010 ...and Catalyst has been looking to unload some or all of it since 2012 ...last year a sale for 1.5 BB fell through...pandemic related Glad we

[malx1]

The executives at Catalyst are too greedy to get a deal done.  Proposed valuations for the IPO are outlandish and have been too high for almost 10yrs now.   Last I checked (2018) they owed about 1,000mm vs assets of about $1,000mm.  Post pandemic, their balance sheet will be ugly.  The takeover of Gateway Casinos turned into a white elephant.  They know it, that'

[BarstoolSage]

Even before the pandemic, Casino Rama, a flagship resort casino ...one of the first....was hurting badly with declining attendance, a much smaller games room, lots of vacancy in their hotel...not to say all Ontario casinos are hurting..but there has been a lot of sectoral expansion so that a "destination casino" is less of a need or attraction. It is operated by Gateway

[cpeczek]

Interesting, I wonder if Catalyst contemplated an IPO last year. Since the shutdowns were a factor they may not have got a fair valuation.

[malx1]

https://www.theglobeandmail.com/business/article-gateway-casinos-sale-collapses-as-potential-buyer-pulls-plug/ Buyer walked on the deal.  Can't blame them.  Needed to be discounted considering economic uncertainty. 

[malx1]

Institutional money has been avoiding Alberta since Liberals took govt and during NDP were voted in provincially.  Exposure to energy has been the deterrent for investors.  When commodity prices recover and remain at $75wti and $4mm/btu, the headwinds eventually become tailwinds and Alberta prospers.  Nobody wants to believe it but the recovery is already underway.