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RED DEER, AB / ACCESSWIRE / March 17, 2020 / Gamehost Inc. ("Gamehost", the "Company") (TSX:GH)
Gamehost in conjunction with our regulator AGLC and the Government of Alberta has decided to temporarily close our casinos immediately and until further notice.
The health and wellbeing of our customers, staff and the communities where we serve is at the forefront of this action. Along with numerous other organizations who have taken similar actions we too will do our part for the collective benefit of everyone.
The temporary closure and suspension of casino operations will take place immediately and remain in effect until further notice. Gamehost hotels are not affected by this temporary suspension and for the time being will continue to operate with enhanced cleaning and social distancing protocols.
There have been no confirmed or presumptive cases of COVID-19 reported at any Gamehost facilities. These casino closures are a temporary preventative response to the recommendations of health authorities for limiting the potential for spread of the COVID-19 virus in places of public gathering.
On March 10, 2020 Gamehost declared a cash dividend for the month of March 2020 of $0.0575 per common share. This dividend will be paid on April 15, 2020 to shareholders of record on March 31, 2020.
At a special meeting of the Company's board of directors, it has been decided that future dividends will be temporarily suspended until such time as the company has better clarity as to the reopening of its casinos and overall economic conditions.
In a further effort to preserve cash, executive management and the board of directors of Gamehost will immediately, and until further notice, defer their compensation. Non-contractual and non-essential operating expenditures will be eliminated.
Gamehost has a solid financial position and currently operates with a net debt to EBITDA ratio of 1.1 which includes cash of $13.4 million. Credit facilities include the Company's $30.0 million revolver with available capacity of $9.6 million. The revolving facility requires interest only payments at the lenders prime rate, currently 2.95%. The Company has a further $19.9 million in term debt facilities requiring blended principal and interest payments over twenty years at a fixed rate of 3.5%. The Company's lender has expressed support for the Company due to our strong financial position if additional capital is required.
We are confident we are amply prepared to see through this crisis and will thrive once again in due course. We look forward to a casino reopening date for our employees and customers.
Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a strip mall all located in Grande Prairie. The Company has a 91% controlling interest in Deerfoot Inn & Casino Inc. which operates the Deerfoot Inn & Casino in S.E. Calgary.
Gamehost common shares trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, visit www.gamehost.ca. Complete disclosure of the Company can be found on SEDAR at www.sedar.com.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
For more information, contact:
Craig M. Thomas or;
Darcy J. Will
Toll free (877) 703-4545
Fax (403) 340-0683
Email [email protected]
SOURCE: Gamehost Inc.