Elray Gaming Announces That It has Entered Into a Binding Letter of Intent to Acquire a Macao Gaming Company
NEW YORK, March 22, 2012 /PRNewswire/ — Elray Resources Inc. (OTC.BB:ELRA) announced today that it has entered into a binding Letter of Intent with Golden Match, a company incorporated in the British Virgin Islands.
Elray and Golden Match will enter into an Acquisition Agreement in which Elray will acquire all of the outstanding shares of Golden Match.
Golden Match is an investment holding company. Its principal business activity is to hold a profit share agreement with a VIP Room Gaming Promoter, the terms of which they receive 80% of the profit stream from the Promoters. The Promoter currently participates in the promotion of many major luxury VIP gaming facilities in Macao, China, the largest gaming market in the world, which include the MGM, Venetian, Wynn, Galaxy and City of Dreams.
VIP gaming operations in Macao consist of VIP rooms that offer exclusively high-limit baccarat table games. Baccarat is the largest source of gaming revenue in Macao. Gaming Promoters in Macao have historically maintained the majority of VIP customer relationships. The Promoters secure VIP rooms through agreements in which they receive either a commission on turnover or a split of the casino net gaming win or loss on a pre-gaming tax basis.
The letter of intent includes:
Golden Match is a company that has negotiated a profit sharing agreement with Cali Promocao de Jogos Sociedade Unipessoal Lda. (CALI), a company duly incorporated under the laws of the Special Administrative Region of Macao, and promotes Casinos in Macao SAR pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macao SAR Over the past 5 months, CALI has generated approximately US$ 17 million profit after tax.
The agreements that Cali currently has in place are with the MGM Grand Macao, the Venetian, Wynn, Galaxy and City of Dreams.
Mr. Lao Sio I will be appointed Chairman of the Board of Directors with Brian Goodman remaining as Chief Executive.
Following the completion of the Acquisition Agreement, Elray will initially raise working capital to fund growth.
On signature of the letter of intent, Mr. Lao Sio I commented, “I am excited by this development as it enables us to take advantage of exciting growth opportunities that are available for expansion that a privately held company is unable to do. Macao has become the leading gaming center world wide, new casinos are opening, existing ones are expanding with more and more people visiting Macao, we will now be able to pursue these opportunities.”
Brian Goodman, current CEO stated that, “Elray will now be well positioned to develop and grow as a gaming entity internationally. The Macao opportunity together with the US listing will enable the company to raise growth capital, acquire other promoters in Macao as well as in other jurisdictions and negotiate more favorable terms with casinos due to its heightened profile. All in all a good result for Elray stockholders.”
About Mr. Lao Sio I
Mr. Lao Sio I is a highly educated Chinese Citizen and a resident of Macao. After graduating with a number of Degrees from the Macao Polytechnic Institute Mr. Lao Sio I (39 years old) completed numerous post graduate courses including diplomas in English as well as a number of technology related courses.
Following a successful career in local government in Macao, Mr. Lao Sio I entered the gaming industry in 2003, initially as a Casino VIP host and in 2005 investing in a VIP room as a senior partner. Since that time Mr. Lao Sio I has developed the reputation of being one of the leading, influential and respected gaming promoters in the GCR (Greater China Region) having negotiated deals with the largest Casinos in Macao. As Chairman, Mr. Lao Sio I will be leading the future development and growth of Elray.
Elray is an established Global Online Gaming entity, which owns and licenses Gaming Intellectual Property, Gaming Domains, Trademarks and Player Databases.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company’s business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company’s periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
SOURCE Elray Gaming