EVGEF: Acquisition/Merger/Amalgamation. No other info on FINRA.

FINRA deleted symbol:

https://otce.finra.org/otce/dailyList?viewType=Deletions

Evergreen to be acquired by Maverick for $68M (U.S.)

2022-09-08 15:18 ET - News Release

Mr. Steve Michels reports

EVERGREEN GAMING CORPORATION ENTERS INTO DEFINITIVE ARRANGEMENT AGREEMENT TO BE ACQUIRED BY MAVERICK GAMING LLC

Evergreen Gaming Corp. has entered into an arrangement agreement with Maverick Gaming LLC and its subsidiary Maverick Acquisition Canada ULC, which contemplates a plan of arrangement under the Business Corporations Act (British Columbia). Pursuant to the arrangement agreement and the accompanying initial purchase agreement, defined hereafter, Maverick will acquire all of the outstanding common shares of Evergreen.

Under the transactions contemplated in the arrangement agreement and the initial purchase agreement, Maverick would acquire 100 per cent of the outstanding common shares of Evergreen for cash consideration of 55 U.S. cents per Evergreen share, subject to adjustment as referred to hereafter. The transaction was unanimously approved at a meeting of the Evergreen board of directors, and the Evergreen board of directors unanimously recommends that Evergreen shareholders vote in avour of the transaction. The transaction provides total consideration, subject to potential adjustment, of approximately $68-million (U.S.).

Transaction highlights:

The transaction is the culmination of negotiations with a number of third parties expressing an interest in acquiring the company, beginning in late 2018, with the offer price per share represented by the transaction being the highest price offered for 100 per cent of the outstanding shares of Evergreen. The 55-U.S.-cent cash consideration offered for each Evergreen share equates to approximately 72 Canadian cents per share at the current exchange rate, representing an 18-per-cent premium to Evergreen's 30-day volume-weighted average share price and a 28-per-cent premium to Evergreen's 60-day volume-weighted average price on the TSX Venture Exchange for the period ended Sept. 7, 2022.
The consideration is all cash and is not subject to a financing condition.
The consideration secures immediate value for Evergreen shareholders.
Shareholders who collectively hold or control approximately 78 per cent of Evergreen's outstanding shares have entered into support agreements pursuant to which they have agreed to vote their shares in favour of the transaction.
Evergreen is entitled to terminate the arrangement agreement to enter into a definitive agreement with respect to a superior proposal, in which case Maverick is entitled to a termination fee of $2.5-million (U.S.).
Evergreen is entitled to a reverse break fee of $2.5-million (U.S.) in certain circumstances upon the termination of the arrangement agreement.
The arrangement agreement contains customary deal protection provisions, including that Evergreen is not entitled to solicit third parties or engage in negotiations or discussions with third parties regarding a potential acquisition of the company, except as expressly provided in the arrangement agreement, and that Maverick has a right to match any superior proposal received by Evergreen.
Evans & Evans of Vancouver, B.C., is acting as financial adviser to Evergreen. Evans & Evans has provided an opinion to Evergreen's board of directors that, as of the date of the opinion, and subject to the assumptions, limitations and qualifications on which such opinion is based, the consideration to be received by Evergreen shareholders is fair, from a financial point of view, to the Evergreen shareholders.

Transaction details

The transaction will be completed in a two-step process, anticipated to occur on the same day. To comply with certain Washington State gaming regulations, Maverick will first acquire seven million common shares of Evergreen from Michels Development LLC (MDL), a private company wholly owned by Steve Michels, the chairman, chief executive officer and a director of Evergreen, under a share purchase agreement between MDL and Maverick. Under the initial purchase agreement, MDL will receive consideration per share for the seven million shares subject to the agreement that is identical to the consideration received by all other shareholders of Evergreen under the arrangement. If the sale contemplated by the initial purchase agreement is completed and the arrangement should subsequently fail to close for any reason, the sale under the initial purchase agreement will be rescinded.

Subject to satisfaction of all conditions for closing provided for in the arrangement agreement, the arrangement is intended to close immediately following the closing of the sale under the initial purchase agreement. Under both the initial purchase agreement and the arrangement, the Evergreen shareholders will receive 55 U.S. cents for each Evergreen share held, subject to adjustment as follows. The arrangement agreement provides that if the company's closing cash, as defined in the arrangement agreement, is less than $26-million (U.S.), then the total consideration payable to the Evergreen shareholders under the transaction will be reduced proportionately, provided, however, that, if closing cash is less than $20.6-million (U.S.), there is no further reduction in the total purchase price beyond $5.4-million (U.S.). If the total purchase price is reduced pursuant to the foregoing (the amount of such reduction being the shortfall), the price payable for each share is reduced from 55 U.S. cents by the amount that results when the shortfall is divided by the number of Evergreen shares outstanding.

In the event that the consideration payable per share to Evergreen shareholders is reduced in accordance with the foregoing and in the event that the company subsequently receives one or more payments of a U.S. federal tax refund as a result of employee retention credits that the company has applied for, the amount of any such refund will be paid pro rata to the Evergreen shareholders in one or more subsequent payments, provided, however, that such payment will not exceed the shortfall.

The transaction is subject to approval by the Evergreen shareholders, court approval and other closing conditions, including closing cash being not less than $28-million (U.S.), receipt of required Washington State gaming approvals and the TSX Venture Exchange accepting the arrangement agreement for filing. Full details of the transaction will be set out in Evergreen's management information circular that Evergreen will prepare in respect of the meeting of shareholders to approve the transaction, which is expected to occur in the fourth quarter of 2022. The transaction is expected to close by the end of 2022.

The arrangement agreement includes customary provisions, including non-solicitation of alternative transactions, a right to match superior proposals in favour of Maverick and fiduciary-out provisions. Evergreen has agreed to pay a termination fee of $2.5-million (U.S.) to Maverick upon the occurrence of certain termination events. Maverick has agreed to pay a termination fee of $2.5-million (U.S.) to Evergreen upon the occurrence of certain termination events.

Certain directors and officers of Evergreen that are shareholders of Evergreen have entered into support agreements with Maverick pursuant to which they have agreed, among other things, to support the transaction and vote their Evergreen shares in favour of the arrangement. In total, shareholders holding approximately 78 per cent of the outstanding shares of Evergreen have entered into such support agreements.

About Evergreen Gaming Corp.

Evergreen is in the business of overseeing the gaming operations of its principal U.S. subsidiary, Washington Gaming Inc. (WGI). WGI, through its subsidiary corporations, operates four casinos in Washington State: the Riverside Casino in Tukwila, Goldies Casino in Shoreline, and the Chips and Palace Casinos in Lakewood. The casinos are mini-casinos (or house-banked card rooms), which offer to persons of legal age a variety of card games of chance at which the player may win or lose money, a business commonly referred to as gaming. WGI also operates bars and restaurants in each casino.

About Maverick Gaming LLC

Maverick is a gaming company with over 3,000 dedicated team members. Maverick owns and operates a portfolio of 27 properties across Nevada, Washington and Colorado with over 1,800 slot machines, 350 table games, 1,020 hotel rooms and 30 restaurants. Maverick is a proud employer of Teamsters Local 117 workers at its Washington locations as part of its commitment to providing sustainable, family-wage jobs.

Founded in 2017 by industry veterans Eric Persson and Justin Beltram, Maverick takes a bold approach to a classic pastime. With an all-star leadership team from some of the largest gaming brands spanning markets in the world, Maverick is dedicated to delivering the best possible gaming experiences for every kind of player.

We seek Safe Harbor.

Trading below it's cash value right now with Q4 results coming out shortly. Unreal how clean this company is and how low it trades. See past results:
Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Debt Ratio
2012(Q1-Q4) $25,958,829 -$445,775 $15,736,142 $13,561,034 1.16
2013(Q1-Q4) $28,341,631 $1,344,683 $15,870,890 $12,351,098 1.28
2014(Q1-Q4) $30,555,757 $2,720,669 $18,143,126 $11,902,666 1.52
2015(Q1-Q4) $33,338,543 $3,933,883 $19,613,905 $9,439,562 2.08
2016(Q1-Q4) $33,326,624 $1,909,408 $23,922,129 $11,838,378 2.02
2017(Q1-Q4) $34,958,327 $3,032,901 $27,062,630 $11,945,978 2.27
2018(Q1-Q4) $39,406,306 $5,951,864 $32,474,080 $11,405,562 2.85
2019(Q1-Q3) $29,593,880 $3,687,945 $35,820,347 $11,063,886 3.24

Evergreen Gaming added to the OTC under ticker EVGEF:

https://otce.finra.org/otce/dailyList?viewType=Additions

TNA announcing today that it's going to sell itself. This was obvious given the growth of the company and lack of interest in promoting it. Purpose was to clean up the balance sheet since 2013 and then sell it off since insiders own around 75% of the stock. I started posting about this stock in 2017 and in less than two years, it's gone from $0.115 to $0.34 with a steady rise.

The next big stock I have been adding is AXM.V(Axmin Inc) or AXMIF on the US side. Axmin Inc has a proven resource and could do the same thing TNA did, go up 10 fold over the next couple years as the company is getting back a proven gold mine that is worth several times the current market cap. Not only that, it's cash flow postive like TNA from a royalty it owns in Senegal and heavy insider ownership.

News below:

Evergreen Gaming in talks to sell itself

2019-01-09 07:56 MT - News Release


Mr. Clive Forth reports

CORPORATE UPDATE

Evergreen Gaming Corp. has entered discussions with a third party that has expressed an interest in buying the company. No definitive terms have been agreed to, no formal agreements have been executed and there can be no assurance that the discussions will be concluded, any definitive agreement will be entered into or any transaction will be consummated. The company does not expect to provide further information or updates until a definitive agreement has been entered into or discussions between the parties have been terminated.


© 2019 Canjex Publishing Ltd. All rights reserved.

Looks like resistance has hit this stock over the last month despite decent earnings. Starting to unload my position and take the 100%+ gain and purchase AXM.V and CAF.V since they are half the price with more potential than TNA.V. Getting two stocks for the price of one is always a good deal and great diversification strategy. What the market has taught us is despite the venture at a three year low, earnings based companies continue to go up. The losses are coming from Marijuana/Crypto and speculative companies that have no capital to work with. Thus buying small caps that generate free cash flow cannot lose in these turbulent times. But AXM being in gold and CAF in coking coal used for steel, these two metals are highly sought after right now.

TNA Earns $1.5 Million USD In Q1 2018

TNA.V Q1 2018 Results (Ending March 31st 2018)
All Numbers Are In US Dollars. Information from SEDAR

Price: $0.20
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%

Financials

ASSETS (USD)
Property & Equipment: $8,916,932
Goodwill: $6,435,481
Trademarks: $1,185,000
Game License: $55,467
Deposits: $36,678
Inventories: $170,905
Receivable: $19,963
Other Assets: $93,404
Restricted Cash: $3,326,656
Cash: $8,431,973
Total Assets: $28,672,459

LIABILITIES (USD)
Deferred Tax: $279,000
Notes Payable: $5,504,185
Trade Payable: $6,013,996
Current Note Payable: $275,647
Total Liabilities: $12,072,828

Q1 2018 Performance
Sales: $10,174,943
Net Income: $1,482,979

Earnings per share in Q1: $1,482,979 * 1.30(CAD) / 124,716,865 = $0.0155c EPS

Prior Quarters - Revenue Breakdown per quarter
Date – Sales – Net Income
2014 - $30,555,757 - $2,720,669 USD
2015 - $33,338,543 - $3,933,883 USD
2016 - $33,187,853 - $1,909,408 USD
2017 - $35,609,459 - $3,032,901 USD
2018(Q1) - $10,174,943 - $1,482,979 USD

Fair value for TNA.V based on 17 profitable quarters should be around $0.40. However, due to lack of investor relations (marketing), this stock still trades at an astronomical discount.

Management Discussion Highlights

Net revenues for the quarter ended March 31, 2018 were $10,174,943, an increase of $1,944,969 compared to the same period in the prior year. Table games revenue increased by approximately $1,381,000 as a result of gaming dollars dropped being 21.1% higher than the same period last year, and the hold percentage was up slightly by .1%. Poker revenue increased by approximately $456,000 as a result of making the Palace Lakewood all poker tables effective February 1, 2018. Operating expenses were $8,245,859 in the quarter ended March 31, 2018 compared to $7,620,589 in the prior year quarter. Labor and benefits expenses decreased slightly by approximately $11,000. This decrease was primarily due to the closure of the Palace Tukwila that took place on February 4, 2017. The decrease was offset by the increase in the minimum wage that went from $11.00 to $11.50 effective January 1, 2018. Marketing and administrative increased approximately $356,000 which was primarily due to marketing expenses increasing approximately $420,000 offset by a decrease in management fees of $75,000. The increase in marketing expenses consisted of $207,000 at the Palace Lakewood and $213,000 at the other locations. The Palace Lakewood increase was the result of promoting the location as an all poker facility. The management expenses decreased as the result of terminating the management agreement with Michels Management Services effective December 31, 2017. Gaming taxes and license expenses increased approximately $215,000 as a result of the increased gaming revenue.

The Company’s cash at March 31, 2018 was $11,758,629, compared to $10,043,965 at December 31, 2017. These amounts include “Restricted Cash” balances of $3,326,656 and $2,975,946 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended March 31, 2018 was $1,838,039 compared to $1,250,501 for the quarter ended March 31, 2017.

The Company’s assets at March 31, 2018 totaled $28,672,459 compared to total liabilities of $12,072,828. At December 31, 2017, total assets were $27,062,630 compared to total liabilities of $11,945,978.
Net revenue increased to $10,174,943 in the quarter ending March 31, 2017 compared to $9,413,335 in the quarter ending December 31, 2017. Gaming dollars dropped increased 3.4% in the current quarter and the hold percentage increased 0.7% compared to the quarter ending December 31, 2017. Operating expenses in the quarter ending March 31, 2018 were $8,245,859 compared to $8,394,959 in the prior quarter. Labor and benefits expense decreased approximately $112,000 in the quarter ending March 31, 2018 compared to the prior quarter. This decrease was primarily due to labor and benefits expense at Palace Lakewood decreasing approximately $154,000 as a result of converting the location to all poker on February 1, 2018.

TNA.V Year End Results (Ending December 31st 2017)
All Numbers Are In US Dollars. Information From SEDAR

Price: $0.18
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%

ASSETS (USD)
Cash: $7,068,019
Property, Plant & Equipment: $8,941,741
Trademarks: $1,185,000
Licenses: $58,934
Deposits: $42,269
Inventories: $151,808
Accounts Receivable: $39,507
Other Current Assets: $163,925
Cash (Restricted): $2,975,946
Total Assets: $27,062,630 (2016 - $23,922,129)

LIABILITIES (USD)
Payables: $5,820,147
Notes Payable: $272,976
Deferred Tax: $279,000
Notes Payable (Mortgages): $5,573,855
Total Liabilities: $11,945,978 (2016 - $11,838,378)

2017 Sale Performance
Total Revenue: $35,609,459
Income Before Tax: $4,259,644
Income Tax Expense: $1,226,743 (will be less in 2018 due to Trump tax policy change)
Net Income: $3,032,901 USD

Earnings per share: $3,032,901 USD X 1.28 CAD = $3,882,113

$3,882,113 CAD / 124,716,865 (common shares = $0.031 CAD

Prior Quarters - Revenue Breakdown per quarter
Date – Sales – Net Income
2014 - $30,555,757 - $2,720,669 USD
2015 - $33,338,543 - $3,933,883 USD
2016 - $33,187,853 - $1,909,408 USD
2017 - $35,609,459 - $3,032,901 USD

Q1 2018 results will be out end of May. Should be another healthy profit.

Management Discussion Highlights

Casino revenues for the quarter ended December 31, 2017 were $9,413,336, an increase of $1,317,208 compared to the same period in the prior year. Gaming dollars dropped were 11.5% higher than the same period last year, which was partially offset by the hold percentage being down slightly by .1%. Operating expenses were $8,394,959 in the quarter ended December 31, 2017 compared to $7,965,032 in the prior year quarter. Labor and benefits expense increased approximately $132,000. This increase was primarily due to the increase in the minimum wage. This increase would have been even higher except for the closure of the Palace Tukwila that took place on February 4, 2017. In the fourth quarter of 2016 the Palace Tukwila had labor and benefit expense of approximately $233,000. Marketing and administrative increased approximately $267,000 which was primarily due to the final payment of $175,000 to Michels Management Services related to the termination of the management agreement. The Company had net non-operating income of $170,207 in the fourth quarter of 2017 compared to net non-operating expense of $151,418 in the fourth quarter of 2016. This increase of $321,625 was primarily due to the gain on disposal of property, plant and equipment of $246,774 recorded in the fourth quarter of 2017. This gain was primarily related to the sale of the real property of Palace Tukwila that closed on December 1, 2017.

The Company recorded year to date net revenues of $35,609,459 compared to $33,187,853 for the year 2016. Table games revenue increased approximately $1,356,000 primarily due to gaming dollars dropped increasing 6.6%. Poker revenue increased $636,000 and Food and beverage revenues net of promotional allowances increased $394,000. Total operating expenses for 2017 was $31,284,524 compared to $29,958,017 in 2016. Labor and benefits expense increased approximately $822,000 primarily due to the increase in the minimum wage from $9.47 to $11.00 an hour effective January 1, 2017. Marketing and administrative expenses increased approximately $457,000 due to management fees increasing $215,000 and professional fees increasing $128,000. The management agreement with Michels Management Services was terminated effective December 31, 2017 with the Company agreeing to make a final payment of $175,000.

Working capital at December 31, 2017 was $4,306,082 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.

The Company’s assets at December 31, 2017 totaled $27,062,630 compared to total liabilities of $11,945,978. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378. The increase in assets is primarily due to the increase in cash as a result of the income from operations of $4,324,935 in 2017

The Company’s cash at December 31, 2017 was $10,043,965, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,975,946 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities as of the year ended December 31, 2017 was $6,317,699 compared to $2,819,477 as of the year ended December 31, 2016.

The operating results for the quarter ending December 31, 2017 showed an increase in net revenues of $858,639 from the prior quarter offset by an increase in operating expenses of $882,801. Net revenues increased due to an increase in table games revenue of approximately $491,000 as a result of the hold percentage being 0.9% higher in the fourth quarter. Poker revenue also increased by $165,000 in the fourth quarter compared to the prior quarter. Operating expense increase was due to Labor and benefits increasing $120,000 and Marketing and administrative expenses increasing $683,000.

Evergreen Gaming to file fiscal 2017 financials late

2018-05-02 12:48 MT - News Release


An anonymous director reports

COMPANY ANNOUNCES LATE FILING OF ANNUAL FINANCIAL STATEMENTS

Evergreen Gaming Corp. will be late in filing its audited financial statements for the financial year ended Dec. 31, 2017, as the statements were not filed by the April 30, 2018, deadline. This delay resulted from a reorganization involving the company's auditor and the rationalizing of oversight procedures of the audit firms involved in the reorganization, particularly with respect to clients who are new to the predominant party to the reorganization. To the knowledge of the company, no audit issues exist with respect to the statements and it is expected that the finalized statements will be issued within the next 10 business days.

© 2018 Canjex Publishing Ltd. All rights reserved.

Washington Cardroom Stats From June 2017
This is delayed by a couple quarters, but it shows how well TNA is doing compared to the competitors in the area. TNA owns 4 casinos (Chips, Goldies, Palace, Riverside) and they are placed in the following rank in terms of sales(out of 71 total)

https://www.wsgc.wa.gov/sites/default/files/public/FY%202017%20Card%20Room%20Report%20vF.PDF

2 THE PALACE 67-00010 $13,549,539 $0 $13,549,539 $1,354,953
5 RIVERSIDE CASINO 67-00187 $11,190,876 $0 $11,190,876 $1,119,087
11 GOLDIE'S SHORELINE CASINO 67-00016 $7,259,130 $0 $7,259,130 $725,914
18 CHIPS CASINO/LAKEWOOD 67-00020 $5,777,681 $0 $5,777,681 $635,545

TNA website for details http://www.evergreengaming.com/us/

January 2018 Article By Simply Wallstreet

Evergreen Gaming Corporation (TSXV:TNA)

Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is headed by CEO Dawn Mangano. It currently has a market cap of CAD CA$21.05M placing it in the small-cap category

TNA’s stock is now floating at around -69% below its true value of $0.56, at the market price of $0.17, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, TNA’s PE ratio is currently around 9x compared to its hospitality peer level of 16.3x, meaning that relative to its comparable set of companies, TNA’s stock can be bought at a cheaper price. TNA is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 49% has been diminishing over the past couple of years showing its ability to reduce its debt obligations year on year.

https://simplywall.st/stocks/ca/materials/tsx-asr/alacer-gold-shares/news/best-cheap-stock-in-january/

Evergreen sells Tukwila property for $1.95M (U.S.)

2017-12-13 15:48 MT - News Release

An anonymous director reports

SALE OF TUKWILA REAL ESTATE

Evergreen Gaming Corp. has sold real estate located at 14027 Interurban Ave. South, Tukwila, Wash., 98168. This was the location of the casino that ceased operations in February of 2017. No revenue-generating use was found for the property after the closure, so it was listed for sale. The sale of real estate closed on Nov. 30, 2017, for $1.95-million (U.S.). The mortgage and a note attached to the property were paid off from the proceeds of the sale.

© 2017 Canjex Publishing Ltd. All rights reserved.

Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Debt Ratio
2012(Q1-Q4) $25,958,829 -$445,775 $15,736,142 $13,561,034 1.16
2013(Q1-Q4) $28,341,631 $1,344,683 $15,870,890 $12,351,098 1.28
2014(Q1-Q4) $30,555,757 $2,720,669 $18,143,126 $11,902,666 1.52
2015(Q1-Q4) $33,338,543 $3,933,883 $19,613,905 $9,439,562 2.08
2016(Q1-Q4) $33,326,624 $1,909,408 $23,922,129 $11,838,378 2.02
2017(Q1-Q3) $23,451,331 $2,012,248 $26,871,601 $12,775,602 2.10

Notes: 1) 2017 Revenue Higher Than 2016 Revenue Over 9 Months
2) 124,716,865 Common Shares With 77.51% Insider Held
3) Tukwila Casino Sold For $1.95US To Horizon Ford. Property unused for most of 2017

Tukwila Casino Sold For $1.95 Million USD

http://www.horizonford.com/seattle-ford-moving

http://www.sterlingrealestate.idxbroker.com/idx/details/listing/b259/583212/14027-Interurban-Ave-S-Tukwila-WA-98168

Comparing the address of the Tukwila listing and the new location of this Ford dealership, they are identical.

From TNA.V’s the most recent MD&A (found on Sedar)

Page 6:
On August 5, 2015, the Company refinanced the first position note payable to a third party secured by the property at 14027 Interurban Ave S. Tukwila, WA. A new 10-year $720,000 loan at Banner Bank carries a 5% fixed interest rate for the first five years, with monthly payments of $7,659. In years 6-10, the rate will be calculated based on the Bullet Rate for the 5-year FHLB Fixed Rate Advances (the “Index”) plus a margin of three percentage points (3.0%). If the Index rate changes, the amount or number of monthly payments and/or the final payment amounts may change to accommodate the change in interest rate. The interest rate may not fall below the initial 5%, and its maximum is limited by law. This action pays off the 9.5% interest rate loan that was in place, reducing the monthly payment by $1,252 per month.

Page 1:
The Company has entered into an agreement to sell the real property where Palace Tukwila was located for $1,950,000. The buyer has made a $50,000 earnest money deposit and the sale is supposed to close on or before November 30, 2017.

Evergreen Gaming Corporation Q3 Results (Ending September 30th 2017)
All Information Can Be Found On SEDAR – www.sedar.com

Previous Closing Price: $0.14
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
Retail Shares Available: 28,749,010 or 22.49%

Financial Results (All Numbers In USD)

ASSETS
Property, Plant & Equipment: $10,531,011
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $60,667
Deposits: $27,110
Inventories: $168,011
Accounts Receivable: $37,196
Other Assets: $224,477
Cash, restricted: $2,758,138
Cash: $5,444,510
Total Assets: $26,871,601 USD

LIABILITIES
Deferred Tax Liabilities: $348,000
Notes Payable: $6,573,585
Other Payables: $5,460,159
Notes Payable: $393,858
Total Liabilities: $12,775,602 USD

3 Month Results USD
Revenue: $8,554,697
Net Income: $627,304

9 Month Results USD
Revenue: $26,196,124
Net Income: $2,012,248

9 Month Revenue convert into CAD and Earnings Per Share
USD-CAD-1.27 as of November 16th 2017
$2,012,248 X 1.27 = $2,555,554.90 CAD
$2,555,554.90 / 124,716,865(common shares) = $0.0205 over 9 months

14. SUBSEQUENT EVENTS
The company has entered into an agreement to sell the real property where Palace Tukwila was located for $1,950,000. The buyer has made a $50,000 earnest money deposit and the sale is supposed to close on or before November 30, 2017. The company has mortgages on the property with balances of $1,054,956 as of September 30, 2017 which would be paid in full if the sale is completed. The book value of the property being sold is $1,434,184 as of September 30, 2017.

**NOTE** - Tukwila was closed February 4th and has not generated any revenue since then. This will reduce liabilities substantially and give the company additional operating capital.

TNA.V MD&A Highlights

Overall Performance Current quarter compared to prior year

Net revenue for the quarter ended September 30, 2017 was $8,554,697, an increase of $108,190 compared to the same period in the prior year. Gaming dollars dropped were 11.3% higher than the prior year quarter but that increase was offset by a lower hold percentage of 1.8%. The income from operations was $1,042,536 compared to $971,941 in the prior year quarter. This increase was due to the increase in net revenues partially offset by an increase in operating expenses of $37,595. The labor and benefit expenses increased due to an increase in the minimum wage, but that increase would have been even higher except for the closing of Palace Tukwila on February 4, 2017.

Net income before taxes was $967,761 compared to $836,569 in the same quarter of 2016, a $131,192 increase. The increase was due to the higher income from operations and lower finance costs due to paying off outstanding indebtedness.

Working capital at September 30, 2017 was $2,778,315 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.

The Company’s assets at September 30, 2017 totaled $26,871,601 compared to total liabilities of $12,775,602. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

The Company’s cash at September 30, 2017 was $8,202,648, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,758,138 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended September 30, 2017 was $1,615,226 compared to $471,994 for the quarter ended September 30, 2016.

Additional Information Can Be Found On SEDAR

Nice article from Simply Wallstreet. Looking forward to seeing TNA's Q3 results end of November and by then their $2 million Tukwila property sale (currently pending) should be completed. I am estimating that the company will earn at least $500,000 US profit. Their Q3 is always a bit slower and I am being very conservative on the earnings, especially after making over $1 million USD last quarter. Their Q1 profit $377,000 net income but that was also hurt by Tukwila still in operation at the time.

https://simplywall.st/news/2017/10/29/evergreen-gaming-and-other-great-cheap-stocks/

Evergreen Gaming Corporation (TSXV:TNA)
Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is run by CEO Dawn Mangano. With the company’s market capitalisation at CAD CA$17.95M, we can put it in the small-cap group

TNA’s shares are currently trading at -22% beneath its true level of $0.17, at a price tag of $0.14, based on my discounted cash flow model. This mismatch signals an opportunity to buy TNA shares at a discount. In addition to this, TNA’s PE ratio stands at 7.2x compared to its hotels, restaurants and leisure peer level of 19.4x, indicating that relative to its comparable company group, we can invest in TNA at a lower price. TNA is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 52% has been diminishing for the past few years demonstrating TNA’s ability to pay down its debt.

Information circular will be coming out in a few weeks as per SEDAR. AGM date is early December and it looks like their getting all the paperwork and insider holdings done. Steven Michels bought another 70,000 shares privately end of August and didn't report it until now. See below:


https://www.insidertracking.com/company?menu_tickersearch=TNA%2ACA%20%7C%7C%20Evergreen%20Gaming
Oct 20/17 Aug 28/13 Michels, Steven Control or Direction Common Shares 11 - Acquisition carried out privately 70,000
Date: October 12, 2017 510 Burrard St, 3rd Floor Vancouver BC, V6C 3B9 www.computershare.com To: All Canadian Securities Regulatory Authorities Subject: EVERGREEN GAMING CORPORATION Dear Sir/Madam: We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer: Meeting Type : Annual General Meeting Record Date for Notice of Meeting : November 09, 2017 Record Date for Voting (if applicable) : November 09, 2017 Beneficial Ownership Determination Date : November 09, 2017 Meeting Date : December 13, 2017 Meeting Location (if available) : Surrey, BC Issuer sending proxy related materials directly to NOBO: Yes Issuer paying for delivery to OBO: No Notice and Access (NAA) Requirements: NAA for Beneficial Holders No NAA for Registered Holders No Voting Security Details: Description CUSIP Number ISIN COMMON 30024G103 CA30024G1037

Washington State Card Room & Casino Statistics Sheet

**Note** - As per WSGC website, due to staffing shortages, Q4 2016 is the most recent statistics from card rooms that they have.

At the end of 2016 there were 65 card room casinos in the state of Washington. Dawn Mangano joined Evergreen Gaming Corporation in June 2017.

TNA Casinos – Riverside, Palace, Goldies, Chips,
Dawn Mangano Prior Casinos – Macau, Caribbean(Casino & Card Room)

Statistics Link: http://www.wsgc.wa.gov/docs/statistics/cardroom-gross/2016-4.pdf

Out of 65, this is where TNA’s and Dawn’s casinos ranked:

Dawn’s Prior Casinos:
Macau Casino - #3 of 65
Caribbean Casino - #8 of 65
Caribbean Card Room - #42 of 65

Evergreen Gaming Casinos:
Riverside Casino - #6 of 65
Goldies Casino - #11 of 65
Palace Casino - #16 of 65
Chips Casino - #23 of 65

What this shows is Dawn Mangano was able to run casinos quite well and out of the 65 listed on the sheet, two of them placed under 10. Compared to Evergreen Gaming which only had one placed under 10. Three quarters have gone by and things could be different, but I believe Dawn will play a huge role in Evergreen Gaming’s growth.

Another important note since some individuals have been worried about online gambling being a hindrance to Evergreen’s growth:

Internet Gambling Prohibited In Washington: http://www.wsgc.wa.gov/publications/brochures/5-165-internet-gambling-brochure.pdf

The text did not post properly so here is an image file of the financials

link: http://photobucket.com/gallery/user/JonnyR991/media/bWVkaWFJZDoxMzExMjE2NDk=/?ref=

TNA.V Financial Comparison Chart 2012-2017

Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Debt Ratio
2012 $25,958,829 -$445,775 $15,736,142 $13,561,034 1.16
2013 $28,341,631 $1,344,683 $15,870,890 $12,351,098 1.28
2014 $30,555,757 $2,720,669 $18,143,126 $11,902,666 1.52
2015 $33,338,543 $3,933,883 $19,613,905 $9,439,562 2.08
2016 $33,326,624 $1,909,408 $23,922,129 $11,838,378 2.02
2017 (Q1/Q2) $17,641,426 $1,384,946 $25,495,384 $12,026,687 2.12

Notes: 1) 2017 Revenue Higher Than 2016 Revenue Over 6 Months
2) 124,716,865 Common Shares With 77.51% Insider Held
3) Tukwila Casino Closed February 2017, Currently Pending Sale For $2 Million USD

Below is a complete list of all Casino & Gaming based companies that exist on all three Canadian exchanges (TSX/Venture/CSE). It is a small sector and there are some great buys. But it gives a clear picture of where TNA is trading based on it's peers.

Symbol – Common Shares – Last Price – Last Quarter Profit/(Loss) – EPS(last Quarter)

GC.T – 60.8M - $34.09 - $26.7 Mil CAD Profit - $0.43c

GH.T – 27.7M - $9.94 - $4.2 Mil CAD Profit - $0.16c

ITX.T – 19.5M - $11.73 – ($210 Mil CAD Loss) – No Earnings

NYX.V – 108M - $1.13 – ($21 Mil CAD Loss) – No Earnings

IGG.T – 20M - $2.49 - $266K USD Profit – Takeover At $2.50 Currently

LOTO.C – 63.5M - $0.375 – ($6.9 Mil CAD Loss) – No Earnings

JP.V – 337M - $0.05 – ($804K CAD Loss) – No Earnings

TNA.V – 124.7M - $0.13 - $1.05 Mil USD Profit – $0.01c eps when converted to CAD

PYD.V – 35M – $0.30 - ($1.38 Mil USD Loss) – No Earnings

CNS.V – 81.9M – $0.02 - ($187K CAD Loss) – No Earnings

- Numbers Are Based On Most Recent Quarters Announced
- Filter From Stockwatch Was Used – www.stockwatch.com
- Financial Numbers Taken From Sedar – www.sedar.com
- Additional Information Can Be Found On Sedar

Evergreen Gaming Corporation Q2 Results(Ending June 30th 2017)
All Information Can Be Found On SEDAR – www.sedar.com

Price: $0.12
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
Retail Shares Available: 28,749,010 or 22.49%

Financials + MD&A – All in US Dollars

Financials

ASSETS - USD
Cash: $4,499,410
Restricted Cash: $2,283,216
Other Assets: $176,317
Accounts Receivable: $116,259
Inventory: $176,643
Deposits: $10,551
Game License: $63,267
Trademarks: $1,185,000
Goodwill: $6,435,481
Property & Equipment: $10,549,240
TOTAL ASSETS: $25,495,384

LIABILITIES – USD
Notes Payable(Mortgages): $6,673,081
Trade Payables: $4,616,249
Notes Payable: $389,357
Deferred Tax: $348,000
TOTAL LIABILITIES: $12,026,687

Asset/Debt Ratio: 2.12:1

Note: Pending Sale of Tukwila Casino For $2 million USD - http://www.sterlingrealestate.idxbroker.com/idx/details/listing/b259/583212/14027-Interurban-Ave-S-Tukwila-WA-98168

Quarterly Sales Results

Year - Sales - Net Income – EPS (Earnings Per Share)
2014 - $30,555,757 - $2,720,669 - $0.02c EPS - Not converted into CAD yet
2015 - $33,338,543 - $3,933,883 - $0.03c EPS - Not converted into CAD yet
2016 - $33,326,624 - $1,909,408 - $0.015c EPS - Not converted into CAD yet
2017(Q1) - $8,229,974 - $337,347 - $0.003c EPS – Not converted into CAD yet
2017(Q2) - $8,513,288 - $1,047,878 - $0.008c EPS – Not converted into CAD yet

MD&A Highlights

Evergreen is in the business of overseeing the gaming operations of its principal U.S. subsidiary, Washington Gaming, Inc. (“WGI”).
Net revenue for the quarter ended June 30, 2017 was $9,411,453, an increase of $1,025,705 compared to the same period in the prior year. Gaming dollars dropped were 5% higher than the prior year quarter and the hold percentage increased .7%. The income from operations was $1,654,640 compared to $1,134,414 in the prior year quarter. This increase was due to the increase in net revenues offset by an increase in operating expenses of $505,479. The labor and benefit expenses increased due to an increase in the minimum wage and marketing expenses increased to generate more revenue.

Net income before taxes was $1,564,515 compared to $1,003,841 in the same quarter of 2016, a $560,674 increase. The increase was due to the higher income from operations and lower finance costs due to paying off outstanding indebtedness.

Working capital at June 30, 2017 was $2,246,239 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.

The Company’s assets at June 30, 2017 totaled $25,495,384 compared to total liabilities of $12,026,687. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

The Company’s cash at June 30, 2017 was $6,782,626, compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $2,283,216 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended June 30, 2017 was $2,212,808 compared to $892,469 for the quarter ended June 30, 2016.

The operating results for the quarter ending June 30, 2017 showed a substantial improvement from the quarter ending March 31, 2017. Net revenues increased to $9,411,453 compared to $8,229,974 in the prior quarter. This increase was attributable to an 11% increase in gaming dollars dropped and a .6% increase in the hold percentage. Income from operations increased to $1,654,640 in the second quarter compared to $609,385 in the prior quarter. This was due to the increase in net revenues offset by a $136,224 increase in operating expenses. This was primarily due to an increase in gaming taxes as a result of additional gaming revenue.

Historically, the Company’s sources of funding have been debt and equity financing and cash flow from operations. As of June 30, 2017, the Company had arm’s length debt of $7,062,438, all related to mortgages, including the acquisition of the Lakewood property. Related party debt totalling $832,553 which was owed to Michels Development for the note from Goldies in Shoreline was paid in full in the second quarter.

At June 30, 2017, the Company had cash of $6,782,626 and net working capital of $2,246,239. Total debt payments of $926,451 were made during the second quarter. The monthly debt service cash requirement is just under $58,000.

Evergreen Gaming appoints Mangano president, CEO

2017-07-28 10:54 MT - News Release

Mr. Len Libin reports

NEW PRESIDENT AND CEO

Evergreen Gaming Corp. has appointed Dawn M. Mangano as its new president and chief executive officer. Len Libin filled this position on an interim basis after accepting Monty Harmon's resignation. Mr. Libin will continue in his duties and position as chairman of the board going forward.

Ms. Mangano comes to Evergreen from the Casino Caribbean/Macau Casino cardroom group consisting of five locations in Washington. She spent the last 14 years holding positions in both finance and operations with a broad base of experience including all facets of cardroom management. Ms. Mangano was instrumental in that group's growth with responsibilities including acquisition, construction, licensing, customer development and profitability of the restaurants and casinos. Continuing education through University of Nevada, Las Vegas, and certifications have kept her current in marketing and table game protection. Throughout her time in the industry, Ms. Mangano has gained experience in government regulatory agency relations and political involvement at the state and local levels. Prior to entering the cardroom industry, Ms. Mangano owned and operated an accounting business primarily focused on construction and professional business clients.

© 2017 Canjex Publishing Ltd. All rights reserved.

TNA's Tukwila property status has gone from "For Sale" to "Pending" which could mean a deal was reached.

The casino was listed for $2 million USD and TNA bought it for $1.4 million USD back in 2014.

http://properties.tellusre.com/idx/details/listing/b259/583212/14027-Interurban-Ave-S-Tukwila-WA-98168

Evergreen Gaming CEO Libin now has 23.23% stake

2017-06-01 16:41 MT - News Release

Mr. Len Libin reports

ACQUISITION OF EVERGREEN GAMING CORPORATION SHARES

Leonard Libin has made a number of transactions privately amongst himself and his joint actors, all of whom are family members, wholly owned corporations and trusts beneficially owned by family members, with respect to common shares of Evergreen Gaming Corp. of 8200 Tacoma Mall Blvd., Lakewood, Wash., 98499. The Acquiror last filed an early warning report dated October 31, 2006, in which the number of common shares of Issuer reported to be beneficially owned by the Acquiror totalled 32,172,060 common shares. The Issuer owns 908,000 common shares out of the 124,716,865 common shares issued, and hence the 32,172,060 common shares last reported represent approximately 25.99% of the currently outstanding common shares of the Issuer (25.80% of the issued). There has been no change in the number of common shares of the Issuer owned by the Acquiror and his joint actors since the date of the last filed report. However, as a result of transfers amongst the Acquiror, entities through which the Acquiror beneficially owns common shares of the Issuer, and the Acquiror's joint actors, the Acquiror has transferred beneficial ownership of 3,416,374 common shares of the Issuer, representing 2.76% of the outstanding common shares of the Issuer (2.74% of the issued) to his joint actors. As a result, the Acquiror, personally and indirectly through wholly owned corporations and trusts in which he has a beneficial interest, now has beneficial ownership of 28,755,686 common shares of the Issuer, representing 23.23% of the outstanding common shares of the Issuer (23.10% of the issued), and his joint actors have beneficial ownership of 3,416,374 common shares, representing 2.76% of the outstanding common shares of the Issuer (2.74% of the issued). Details of the dates, consideration paid and received, and other particulars of the Transactions are contained in the early warning report referred to hereafter, which has been filed on SEDAR.

The purpose of the Acquiror and his joint actors in conducting the Transactions was to reorganize the holdings of common shares of the Issuer amongst them to settle inter-party debt and for tax and estate planning purposes.

The common shares of the Issuer held by the Acquiror and his joint actors will be held for investment purposes. The Acquiror and his joint actors may, depending on market and other conditions, further increase, or decrease, their beneficial ownership of the Issuer's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. The Acquiror and his joint actors have no present intention of acquiring or disposing of any additional common shares of the Issuer, other than potential future transfers amongst them.

In conducting the Transactions, the Acquiror does not concede that an exemption from the requirements in securities legislation applicable to formal bids was required. However, if such an exemption was required, the Acquiror and his joint actors claim reliance for each of the Transactions on the exemption provided by section 4.2 of National Instrument 62-104.

This press release is issued pursuant to National Instrument 62-104, which also requires a report to be filed with the B.C. Securities Commission and the Alberta Securities Commission containing additional information with respect to the Transaction (the "Report"). To obtain a copy of the Report or for further information concerning this announcement, please contact Len Libin, CEO of Evergreen, at (425) 282-4172.

© 2017 Canjex Publishing Ltd. All rights reserved.

Evergreen Gaming shareholder Michels acquires shares

2017-06-01 15:53 MT - News Release

Mr. Len Libin reports

ACQUISITION OF EVERGREEN GAMING CORPORATION SHARES

Evergreen Gaming Corp. shareholder Steven Michels on June 1, 2017, through his wholly owned private company Michels Development LLC (MDL), acquired in a private transaction beneficial ownership of seven million common shares of Evergreen Gaming of 8200 Tacoma Mall Blvd., Lakewood, Wash., 98499. The seven million common shares were acquired in exchange for the forgiveness by MDL of $1,440,425 in interest that would have otherwise been payable in connection with a debt obligation owed to MDL. As a result, the seven million common shares were acquired at the effective rate of 20.6 cents per common share. The issuer owns 908,000 common shares out of the 124,716,865 common shares issued, and hence the seven million common shares acquired represent approximately 5.7 per cent of the outstanding common shares of the issuer (5.6 per cent of the issued). Prior to the transaction, the acquiror had control over, but not ownership of, the same seven million common shares acquired. Accordingly, while the acquiror's ownership interest in common shares of the issuer has increased by seven million common shares, the number of shares over which he has control, but not ownership, has decreased by the same number and percentage.

Immediately prior to the transaction, the acquiror had ownership of 11 million common shares of the issuer representing approximately 8.9 per cent of the outstanding common shares of the issuer (8.8 per cent of the issued). Immediately following the transaction, the acquiror had beneficial ownership of 18 million common shares of the issuer representing approximately 14.5 per cent of the outstanding common shares of the issuer (14.4 per cent of the issued).

Immediately prior to the transaction, the acquiror had control over, but not ownership of, 35,747,626 common shares of the issuer representing approximately 28.9 per cent of the outstanding common shares of the issuer (28.7 per cent of the issued). Immediately following the transaction, the acquiror had control over, but not ownership of, 28,747,626 common shares of the issuer representing approximately 23.2 per cent of the outstanding common shares of the issuer (23.1 per cent of the issued).

The acquiror's purpose in acquiring the seven million common shares was to increase his percentage shareholding in the issuer and to receive value for an interest obligation owned to his wholly owned company. The acquiror's common shares of the issuer will be held for investment purposes. The acquiror may, depending on market and other conditions, further increase, or decrease, his beneficial ownership of the issuer's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. The acquiror has no present intention of acquiring or disposing of any additional common shares of the issuer.

This press release is issued pursuant to National Instrument 62-104, which also requires a report to be filed with the B.C. Securities Commission and the Alberta Securities Commission containing additional information with respect to the transaction. To obtain a copy of the report or for further information concerning this announcement, please contact Len Libin, chief executive officer of Evergreen, at 425-282-4172.

© 2017 Canjex Publishing Ltd. All rights reserved.

TNA Q1 2017 Financial & MD&A Results

Price: $0.095
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%
All information can be found at www.sedar.com

Financials (All numbers are in US Dollars)

ASSETS
Cash: $4,073,545
Property, Plant & Equipment: $10,632,512
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $65,867
Deposits: $10,551
Inventories: $175,498
Accounts Receivable: $97,561
Tax Receivable: $163,850
Other Assets: $142,623
Cash(Restricted): $1,441,333
Total Assets: $24,423,821

LIABILITIES
Deferred Tax: $348,000
Notes Payable: $6,772,440
Notes Payable(related parties): $652,656
Other Payables: $3,665,833
Note Payable(current): $383,897
Note Payable Related Parties(current): $179,897
Total Liabilities: $12,002,723

Year - Sales - Net Income
2014 - $30,555,757 - $2,720,669 - $0.02c EPS - Not converted into CAD yet
2015 - $33,338,543 - $3,933,883 - $0.03c EPS - Not converted into CAD yet
2016 - $33,326,624 - $1,909,408 - $0.015c EPS - Not converted into CAD yet
2017(Q1) - $8,229,974 - $337,347 - $0.003c EPS – Not converted into CAD yet

**Note** - Q1 2017 showed a slightly lower profit because Tukwila casino was still operating until February. As well, the prior expense of CEO Monty Harmon was part of this quarter. On top of this all, a new mandatory wage increase was implemented due to Washington law which added $200,000 in additional G&A expenses. Q2 2017 should look better with Tukwila completely closed, Monty removed and management making additional cuts.

MD&A Highlights – Full MD&A Can be found at www.Sedar.com

Overall Performance

Net revenue for the quarter ended March 31, 2017 was $8,229,974, a decrease of $29,496 compared to the same period in the prior year. Gaming dollars dropped were 5% lower than the prior year quarter but that decrease was almost entirely offset by an increase in the hold percentage. The income from operations was $609,385 compared to $992,326 in the prior year quarter. This decrease was primarily due to an increase of labour and benefit expense of $282,178. The labour and benefit expenses increased due to an increase in the minimum wage and additional labour expenses at the Palace Casino Tukwila. The minimum wage increased from $9.47 to $11.00/hourly effective January 1, 2017. The Palace Casino Tukwila opened full gaming operations in mid-June 2016. Labour costs there were high in order to fully staff the casino. Due to the disappointing operating results, Palace Casino Tukwila was closed February 4, 2017.

Net income before taxes was $538,789 compared to $833,048 in the same quarter of 2016, a $294,259 decrease. The majority of this decrease came from additional labour and benefit expenses.

Working capital at March 31, 2017 was $1,864,783 compared to working capital of $1,744,546 at December 31, 2016. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet it’s future obligations.

The company’s assets at March 31, 2017, totalled $24,423,821 compared to liabilities of $12,002,723. At December 31, 2016, total assets were $23,922,129 compared to total liabilities of $11,838,378.

The company’s cash at March 31, 2017 was $5,514,878 compared to $4,563,587 at December 31, 2016. These amounts include “Restricted Cash” balances of $1,441,333 and $914,071 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended March 31, 2017 was $1,250,501 compared to $1,043,234 for the quarter ended March 31, 2016.

Liquidity and Capital Resources

Historically, the companies sources of funding have been debt and equity financing and cash flow from operations. As of March 31, 2017, the company had arm’s length debt of $7,156,337, all related to mortgages, including the acquisition of the Lakewood property. Related party debt totalled $832,553 which is owed to Michels Development for the note from Goldies in Shoreline.

On June 1 2015, the company amended the Goldies Casino related party note with Michels Development. The revision, effective June 1 2015, extended the due date from April 15, 2016 to May 31, 2018; changed the monthly payment from $16,000 to a minimum of $20,000 and increased the interest rate from 5% to 8%. The note was paid in full on May 19, 2017.

The company continues to have access to the $1.2 million line of credit available to Tacoma Casino LLC, and Pete’s Flying Aces, Inc. from the vendor of the companies, Michels Development. As of May 25, 2017 this balance is $0.

Transactions Subsequent to End of Quarter

The Goldies Casino note payable to Michels Development was paid in full on May 19, 2017

**Additional Note**

The Tukwila property is still listed for sale at $2 million USD. The company has a book price of this asset at $1.4 million USD and was purchased in 2014.

http://sterlingrealestate.idxco.com/idx/3780/details.php?idxID=666&listingID=583212

Evergreen Gaming appoints Libin CEO, Wisner CFO

2017-05-15 15:57 MT - News Release


Mr. Leonard Libin reports

CHANGES TO SENIOR MANAGEMENT

Evergreen Gaming Corp. has appointed a chief executive officer and a chief financial officer. Leonard (Len) Libin has assumed the position of CEO, taking over from Monty Harmon, who has led Evergreen for the last five years but has left for personal reasons. Mr. Libin has been active in the gaming industry for over 40 years, including his ownership interest in the Edgewater Casino in Vancouver, B.C. He has served as a director of Evergreen for the past 10 years, and also serves as chairman of the board.

Dennis Wisner has been appointed to the position of CFO of the company. Mr. Wisner served as the CFO of Little Creek Casino in Shelton, Wash., from 1995 to 2005 and the CFO of Michels Development LLC from 2006 to 2010. Michels Development is a private company wholly owned by Steve Michels, a director of the company, which provides management services to the company through Michels Management Services LLC, a wholly owned subsidiary. From 2011 to date, Mr. Wisner has served as the director of operational finance for Evergreen.

© 2017 Canjex Publishing Ltd. All rights reserved.

TNA.V Year End Results (Audited)
Price: $0.135
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51% (Shown in the October 2016 Information Circular on Sedar). All information below can be found on www.sedar.com

Financials(USD)

ASSETS
Cash: $3,649,516
Property, Plant & Equipment: $10,735,045
Goodwill: $6,435,481
Trademarks: $1,185,000
Game Licenses: $68,467
Deferred Tax: $234,000
Deposits: $10,551
Inventories: $166,814
Accounts Receivable: $173,331
Tax Receivable: $425,022
Other Assets: $158,831
Cash(Restricted): $914,071
Total Assets: $23,922,129USD - Last year total assets were $19,613,905USD
Asset gain over the year - $4,308,224USD

LIABILITIES
Deferred Tax: $348,000
Notes Payable: $6,872,471
Notes Payable(related parties): $874,868
Other Payables: $3,202,279
Note Payable(current): $377,893
Note Payable Related Parties(current): $162,867
Total Liabilities: $11,838,378 - Last year total liabilities were $9,439,562
Liability gain over the year - $2,398,816
Growth over 2016: $1,909,408USD

Year End Date -“ Sales - Net Income
2014 - $30,555,757 - $2,720,669 - $0.02c EPS - Not converted into CAD yet
2015 - $33,338,543 - $3,933,883 - $0.03c EPS - Not converted into CAD yet
2016 - $33,326,624 - $1,909,408 - $0.015c EPS - Not converted into CAD yet
Total net income added over 3 years: $8,563,960 or $0.07c cash - Not converted into CAD yet
- Revenue maintained year over year, but due to some corporate structural changes, net income was lower.

Q1 2017 results will be out end of May 2017.
MD&A Highlights
The Company recorded year to date net revenues of $33,326,624 compared to $33,338,543 for the year 2015.  Year to date income from operations was $3,229,778, down from $4,316,691 in 2015.  Additional marketing costs of more than $500,000 were incurred due to increased cash giveaway events and other promotional programs.  Higher labor costs were incurred as a result of game protection and customer service initiatives that have been designed to counter decreases in the table game drop. In addition, 2016 was the first year in which the Affordable Care Act required the company to spend an additional $175,000 on health care premiums for employees.  The company did save almost $400,000 by amending the Michels management agreement, in which the Company hired Michels management personnel in return for deeply cutting the management fees payable to Michels.

Working capital at December 31, 2016 was $1,744,546 compared to working capital of $1,769,385 at December 31, 2015. With sustained healthy revenues and ongoing game protection and expense controls, management expects continued profitable operations sufficient to exceed the cash demands necessary for the company to meet its future obligations.

The Company's assets at December 31, 2016 totaled $23,922,129 compared to total liabilities of $11,838,378.  At December 31, 2015, total assets were $19,613,905 compared to total liabilities of $9,439,562.  These changes reflect the $4.5 million Lakewood property acquisition.

Casino revenues for the quarter ended December 31, 2016 were $8,096,128, a decrease of $323,523 compared to the same period in the prior year. Gaming dollars dropped were 5% lower than the same period last year in spite of a 26% increase in Baccarat dollars dropped at Riverside Casino, which had another excellent quarter with revenues 14% over the same quarter 2015.  Fourth quarter income from operations at the Riverside was $374,861 compared to $359,478 in 2015.   Offsetting that was Chips Casino Lakewood, where revenue was down 27% from the previous year, as their Baccarat hold percentage was half of what its target rate is and gaming dollars dropped decreased 29%.  The decrease in Baccarat hold percentage is the result of the Company having to match competitors in the area who were increasing their giveaway and match play promotions.

 During the fourth quarter Chips Casino recorded a loss from operations of $129,406, which was still far below the positive earnings of $170,002 recorded the same quarter a year ago.   The Palace Casino Lakewood had an excellent hold percentage of 24% which was three points above the fourth quarter 2015, but due to a 14.5% decrease in gaming dollars dropped at the tables, revenues were flat over same quarter last year. In spite of that, and due to careful labor cost controls, The Palace shows an operating profit of $147,017 in the fourth quarter compared to $120,566 the prior year. Goldies Casino also had positive income from operations despite a revenue deficit of $314,377 compared to last year, due largely to an almost 9% decrease in the gaming drop. The Palace Casino Tukwila opened full gaming operations in mid-June, but its transition to a full service casino has not produced the hoped for results. Marketing strategies were revised through the fourth quarter, focusing on table game promotions and food and beverage offerings, which were intended to drive business specifically to that casino.  Labor costs there were high in order to fully staff the casino.  With the Riverside and two competing casinos across the street and next door, the Company was hoping to capitalize on the gaming customer hub in Tukwila and produce a monthly profit by the end of the year, but it did not.
 
The Company recorded year to date net revenues of $33,326,624 compared to $33,338,543 for the year 2015.  Year to date income from operations was $3,229,778, down from $4,316,691 in 2015.  Additional marketing costs of more than $500,000 were incurred due to increased cash giveaway events and other promotional programs.  Higher labor costs were incurred as a result of game protection and customer service initiatives that have been designed to counter decreases in the table game drop. In addition, 2016 was the first year in which the Affordable Care Act required the company to spend an additional $175,000 on health care premiums for employees.  The company did save almost $400,000 by amending the Michels management agreement, in which the Company hired Michels management personnel in return for deeply cutting the management fees payable to Michels.

The Company continues to have access to the $1.2 million line of credit available to Tacoma Casino LLC, and Pete's Flying Aces, Inc. from the vendor of the companies, Michels Development. As of April 28, 2017 this balance is $0.

The Palace Tukwila initially started business in November 2014 as a poker only cardroom.  The Company changed business plans for this property in June 2016 and upon receiving its full house bank gaming license, replaced poker with table games and thereafter operated as a full casino. The Company invested approximately $875,000 in the second half of 2016 with the expectation that there was still room for another cardroom in Tukwila. On February 4, 2017, however, the Company closed the doors, determining that the market niche that had been identified for this cardroom could not be realized.

As a result of the closing of the Palace Tukwila, the Company has offered the property located at 14027 Interurban Ave S. in Tukwila, WA for sale or lease.
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