Maverick Casinos (Maverick) LLC today announced Tuesday the signing of a definitive merger agreement with Nevada Gold (NYSE: UWN). Under the terms of the merger agreement, Maverick will acquire all of the outstanding shares of UWN’s common stock for $2.50 per share in cash, subject to certain minor adjustments. The Transaction will result in the UWN becoming a private company.
Maverick Casinos and it’s affiliates own the Wendover Nugget and Red Garter Hotel in Wendover Nevada. Eric Persson, the majority owner of Maverick and it’s affiliates noted, “our EBITDA in Wendover is on pace to be up over 50% this year, and we see this transaction as one more way to grow our business.
The Seattle area is obviously a fantastic market, but we see the entire State of Washington as an opportunity. We will be announcing specific plans to invest over $20 million dollars in the Tri Cities area shortly, so to us, this is much more than just a Seattle play.
With this important purchase, I will be leaving Aruze to focus on my growing company daily. I’d like to take this opportunity to thank Aruze for the opportunity and I’m very excited to hear about the customer’s responses to Aruze’s product at G2E. I couldn’t be more proud of the product path that we created over the last year and a half.”
Maverick intends to fund this transaction primarily with debt financing and cash. The transaction is not subject to financing as a condition.
The transaction is subject to approval of a majority of the shareholders of Nevada Gold, the approval of applicable gaming authorities, completion of the sale of the Company’s Club Fortune Casino in Henderson, Nevada, which is under contract, and other customary closing conditions. The companies expect the transaction will close by the end of 2018.