Nevada Gold & Casinos announced that effective upon the closure of the company's Las Vegas corporate office and relocation of its headquarters to the Seattle Washington area, Victor Mena, VP of Nevada Gold's Washington Operations, will succeed Michael Shaunnessy as president and CEO of the company. Mena has led the operations in Washington since the initial three casinos comprising the unit were first acquired in 2009. His appointment was approved unanimously by the board. Shaunnessy will continue on a temporary basis to assist in the smooth transition and relocation.
Nevada Gold & Casinos announced the signing of a definitive purchase agreement to sell its Club Fortune Casino in Henderson, Nevada to Truckee Gaming for $14.6M, subject to certain adjustments, including a working capital adjustment. The sale price is equal to approximately 8.5X EBITDA for Club Fortune for the trailing twelve months ended April 30, 2018. The transaction, which received lender consent, is subject to customary closing conditions, including approvals of the Nevada Gaming Control Board and Commission, and is expected to close in late 2018. Following the consummation of the Club Fortune sale, Nevada Gold intends to close its Las Vegas corporate office and move its corporate headquarters to its Washington Gold office in the Seattle, Washington area. The Company expects to reduce its corporate overhead by approximately $1.2M as a result.
Nevada Gold is no longer in exclusive discussions to sell the company and its board has initiated a process to evaluate potential strategic alternatives to maximize shareholder value. As part of the process, the board will consider a full range of strategic, operational and financial alternatives, which may include a sale or other transaction. The company has retained Rossoff & Company as its financial advisor to assist with the strategic review process, and has retained Hughes Hubbard & Reed as its legal counsel. The company has not set a timetable for completion of the review process and does not intend to disclose developments related to the process. The company also entered into an agreement to sell its South Dakota Route operation to Michael J. Trucano for $400K. The transaction is expected to close on June 30, subject to the approval of the South Dakota Commission on Gaming. This sale will free up approximately $250K in net cash used in the working capital of such business, which together with the purchase proceeds of $400K , will be used to decrease outstanding debt of the company by approximately $650K. The company expects to record a net loss from discontinued operations of approximately $300K.
Nevada Gold & Casinos announced that it is in exclusive discussions to sell the company. Chairman William Sherlock said, "There can be no assurance that a transaction will be consummated, and the company does not expect to provide further information or updates pending conclusion of the negotiations."