Toronto, Ontario--(Newsfile Corp. - April 22, 2015) - GC Global Capital Corp. (TSXV: GDE.A) ("Global Capital") is pleased to announce that it has participated in a private placement offering (the "Private Placement") of Poydras Gaming Finance Corp. (TSX-V: PYD) ("Poydras"). Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. It owns and finances slot machines including long-term lease contracts across six casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California.
As of the date of this release, Poydras has accepted subscriptions for $4,140,000 to be issued at $0.07 per common share, of which Global Capital subscribed for 28,571,428 common shares. The common shares acquired by Global Capital represent approximately 13.6% of the post-acquisition issued and outstanding common shares of Poydras. Immediately following the Private Placement, Global Capital holds an aggregate of 36,946,428 common shares, representing approximately 17.6% of the issued and outstanding common shares of Poydras. As outlined in Poydras' April 14, 2015 press release, Poydras intends to raise up to $11,500,000 through a combination of private placement financing and short form prospectus offering. The funds will be used to fund Poydras' 600 machine placement with Tonkawa Tribe of Indians of Oklahoma (see Poydras news release dated January 13, 2015), as well as for general working capital purposes.
Poydras will also enter into a one year fiscal advisory agreement with Global Capital whereby Poydras will receive strategic financial advisory services in exchange for a monthly fee of CAD $20,000.
Poydras management also expects to close its previously announced acquisition of the Integrity Companies within the next 30 days subject to certain conditions including completion of an audit of the Integrity Companies, the approval of the TSX Venture Exchange and the consent of applicable gaming regulatory authorities. Upon closing of the acquisition of the Integrity Companies and the placement of machines with the Tonkawa Tribe of Indians of Oklahoma, Poydras will have over 2,500 machines under participation leases with 26 casinos.
Global acquired the Common Shares for investment purposes only pursuant to a subscription agreement dated April 15, 2015 between Global and the Issuer. The Common Shares were issued to Global from the Issuer's treasury. The Common Shares were acquired under the accredited investor exemption under National Instrument 45-106 - Prospectus and Registration Exemptions. Depending on economic or market conditions or matters relating to the Issuer, Global may from time to time acquire additional securities of the Issuer, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its positions.
Pursuant to National Instrument 62-103, Global will file a related early warning report with applicable Canadian securities regulators, a copy of which will be available under the Issuer's profile at www.sedar.com.
About Poydras Gaming Finance Corp.
Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. It owns and finances slot machines including long-term lease contracts across six casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California. Additional information about the Company can be found on the SEDAR website at www.sedar.com.
About Global Capital
Global Capital is a merchant bank, which provides financing and advisory services , to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global's website at www.gcglobalcapital.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.