news article updated this morning
I may have to postthis on some trader boards for others to read.
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Elray Gaming Comments on Online Gambling Legalization in Investor Call (ELRA, CGAQ)
Last Updated: May 27, 2011 - 9:44am EST
(NEW YORK)--Elray Gaming, which is traded under the name Elray Resources (OTC:ELRA), conducted an investor conference call Thursday morning to dicusss current online gambling operations, and prospects of spinning-off their Gold assets as a dividend.
Gold Dividend Spin-off
In an investor call early Thursday morning, the Company announced there would be an announcement within the next week or so regarding the spin-off of their Cambodia Gold property assets, and have set a record date for this spin-off dividend at June 15th for shareholders of record.
Now that the Company has finalized its reverse merger process, the Company is now looking to move ahead with spinning-off the Gold property assets that were inside the shell pre-merger. This spin-off should give investors the opportunity to not only own a dynamic and profitable online gaming operation, but be able to gain themselves a dividend in a Gold property, all in one investment.
But investors need to be shareholders of record before the June 15th deadline, and with the stock attempting a bounce from a recent decline, shares for this post merger dividend may become harder and harder to obtain.
Operational and Revenue Guidance
For 2011, the Company is projecting total gaming proceeds of $100 million, of which the company would recognize $6.5 million in gross revenues, and $1.1 million in net income. For 2012, the Company is projecting total gaming proceeds to increase to $320 million, of which the company would recognize $8.8 million in gross revenues, or $3.4 million in net income.
Brian Goodman, the CEO of Elray Gaming commented that the prospects for some sort of legalization of online gambling is more a matter of when, not if, and spelled out their current online gaming operations, and structure of the company post reverse merger.
Conference Call Replay
To hear a replay of this call, and their outlook for the online gaming industry and potential legalization you can access if by calling (712) 432-0990, then pass code 319620.
ELRA stock was last traded at around $0.014 per share. (see chart)
