May 12, 2014, Toronto, Canada – GC-Global Capital Corp. (GDE.A:TSXV) (“Global Capital”) is pleased to announce that its investee company, Poydras Gaming Finance Corp. (“Poydras” or the “Company” – formerly known as Great Northern Gold Exploration Corporation) (TSXV symbol: PYD) has completed its reverse take-over (“RTO”) pursuant to a plan of arrangement with Poydras Specialty Finance Corp. (“PSFC”). Concurrent with the closing of the RTO, the Company also completed two concurrent acquisitions: (i) the acquisition of a 100% interest in Poydras Gaming, LLC (“PG LLC”), the operating subsidiary of PSFC and (ii) the acquisition of Windy Hill Capital, LLC (“Windy Hill”), a company in the same line of business as Poydras.
About Poydras Gaming Finance Corp.
Poydras is focused on leasing and financing gaming machines and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. Currently, Poydras Gaming owns or finances gaming machines in Oklahoma and California.
Poydras successfully completed a prospectus offering of 11% secured convertible debentures (the “Convertible Debentures”) for aggregate gross proceeds of US$7,732,000 (the “Debenture Offering”). The Convertible Debentures bear an interest rate of 11% per annum, payable quarterly in arrears, and will mature on March 31, 2017. The outstanding principal under the Convertible Debentures will be convertible into common shares (“Shares”) of the Company at a conversion price of CDN$0.33 per Share. The Company’s obligations under the Convertible Debentures are secured by a first ranking security interest over all of the assets of the Company and its subsidiaries.
The Company also completed a prospectus offering of Shares for gross proceeds of CDN$3,345,000, The Company issued 13,380,000 Shares at a price of CDN$0.25 per Offered Share.
For additional information on the RTO as well as the business of the Company, see the Company’s Share Offering Prospectus and Debenture Offering Prospectus, each dated April 22, 2014 and available on SEDAR at www.sedar.com.
Last fall, in connection with the RTO, Poydras completed a private placement of CDN$3,000,000 principal amount of convertible debentures (the “Bridge Debentures”) effective September 30, 2013 (the “Bridge Financing”). Global Capital’s total participation was CDN$800,000 of the Bridge Financing. The terms of the Bridge Financing included a maturity date two years from the effective closing date of September 30, 2013, with an interest rate of 12% per annum, payable semi-annually for the first year and 15% per annum payable quarterly for the second year. The Bridge Debentures, including those owned by Global Capital, were converted into Shares of Poydras at a price of $0.10 per Share immediately prior to the closing of the RTO.
About Global Capital
Global Capital is a merchant bank, which provides bridge loan 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 Capital’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.
STATEMENTS IN THIS PRESS RELEASE REGARDING THE COMPANY’S BUSINESS PLANS WHICH ARE NOT HISTORICAL FACTS ARE “FORWARD-LOOKING STATEMENTS” THAT INVOLVE RISKS AND UNCERTAINTIES, SUCH AS ESTIMATES AND STATEMENTS THAT DESCRIBE THE COMPANY’S FUTURE PLANS, OBJECTIVES OR GOALS, INCLUDING WORDS TO THE EFFECT THAT THE COMPANY OR MANAGEMENT EXPECTS A STATED CONDITION OR RESULT TO OCCUR. SINCE FORWARD-LOOKING STATEMENTS ADDRESS FUTURE EVENTS AND CONDITIONS, BY THEIR VERY NATURE, THEY INVOLVE INHERENT RISKS AND UNCERTAINTIES. ACTUAL RESULTS IN EACH CASE COULD DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED IN SUCH STATEMENTS. THE COMPANY DOES NOT ASSUME ANY OBLIGATION TO UPDATE OR REVISE EVENTS OR CIRCUMSTANCES UNLESS REQUIRED BY APPLICABLE SECURITIES LAWS.