Custodianship - Reinstatement - Mergers - R/S Denied

[Golden Cross]

$LCA Golden Nugget Online Gaming to become 2nd US pure publicly traded online casino firm

Link:
https://www.yogonet.com/international/noticias/2020/06/30/53760-golden-nugget-online-gaming-to-become-2nd-us-pure-publicly-traded-online-casino-firm

The Fertitta's company will be acquired by Landcadia Holdings II, Inc. Thomas Winter will continue to serve as GNOG's President. The deal values the combined company at an anticipated pro forma enterprise value of about $745 million, and the transaction is expected to close in the third quarter of this year.
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andcadia Holdings II Inc., a publicly-traded special purpose acquisition company, will acquire Golden Nugget Online Gaming Inc., making it only the second pure publicly traded online casino company in the US.

Tilman J. Fertitta and Landcadia Holdings II announced Monday that Landcadia II (co-sponsored by Fertitta Entertainment, Inc. and Jefferies Financial Group Inc.) has entered into a purchase agreement to acquire Golden Nugget Online Gaming, Inc., a US online real money casino owned by Tilman Fertitta. The transaction is expected to close in the third quarter of this year. Upon closing, Landcadia II intends to change its name to Golden Nugget Online Gaming, Inc. and its Nasdaq trading symbol to GNOG.

Tilman J. Fertitta will remain GNOG's Chairman and CEO, and Thomas Winter, who was brought in to develop Golden Nugget's online gaming business, will continue to serve as GNOG's President. During the seven years since Winter started Golden Nugget's iGaming business in New Jersey, revenues and profitability have grown each year despite facing competition with greater financial resources, reaching profitability in 2016. Its net income was more than $11 million in 2019, and its revenue for 2021 is expected to be $122 million.

"GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the US," Rich Handler, Co-Chairman of Landcadia II and CEO of Jefferies LLC, said in a release. "We at Jefferies couldn't be more thrilled to partner with Tilman and bring this great opportunity to the public markets."

Golden Nugget is a well-established leader in New Jersey, the largest online gaming market in North America. GNOG has obtained market access, subject to regulatory approval, to Pennsylvania and Michigan and anticipates launching its online casino brand in each of those new markets in early 2021.

According to Fertitta, "Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business. Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business."

The deal values the combined company at an anticipated pro forma enterprise value of about $745 million, per the release. Landcadia II will assume $150 million of GNOG debut and will pay down an additional $150 million of debt at closing. Landcadia II's trust account currently holds about $321 million, and the combined company will have at least $80 million on its consolidated balance sheet when the deal closes, after paying the purchase price, debt repayment and transaction fees and expenses.