Asia Entertainment & Resources Ltd. Completes Acquisition of King’s Gaming Promotion Limited’s VIP Room in the Venetian M...
November 16 2010 - 8:30AM
Business Wire
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL,
AERLW), which operates through its subsidiaries and related
promoter companies as a VIP room gaming promoter, today announced
that, through AERL's wholly-owned subsidiary, it has completed the
acquisition of 100% of the profit interest in the operations of
King’s Gaming Promotion Limited (“KGP”), a Macau-based VIP room
gaming promoter that currently operates one room with five tables
at the Venetian Macao-Resort-Hotel on the Cotai Strip. KGP has been
successful in maintaining an average Rolling Chip Turnover of
approximately HK$1 billion (approximately US$129 million) per month
over the past ten months under a fixed 1.25% commission on Rolling
Chip Turnover.
As a result of the acquisition closing on November 15, AERL has
the right to all of the profit interest of KGP dating back to
November 1. Following the completion of the KGP acquisition, AERL
has approximately 22.5 million total shares outstanding.
“The addition of this VIP gaming room will enhance our ability
to serve our existing customers, and by combining our operations
and network of agents with that of King’s Gaming, we can expand our
presence in the Macau VIP gaming market into the Cotai Strip,
ultimately providing our shareholders with long-term value,” said
AERL Chairman Lam. “The acquisition, combined with our recent
successful warrant redemption and capital raise, has positioned us
well for future growth.”
With the completion of the KGP acquisition, AERL reiterates its
preliminary guidance of expecting 2011 Rolling Chip Turnover of
US$1.15 billion per month and full year net income of US$55-60
million.
About Asia Entertainment & Resources Ltd.
AERL, formerly known as CS China Acquisition Corp., acquired
Asia Gaming & Resort Limited (“AGRL”) on February 2, 2010. AGRL
is an investment holding company of subsidiaries that, through
profit interest agreements with affiliated companies known as VIP
gaming promoters, are entitled to receive all of the profits of the
VIP gaming promoters from VIP gaming rooms. AGRL’s VIP room gaming
promoters currently participate in the promotion of three major
luxury VIP gaming facilities in Macau, China, the largest gaming
market in the world. One VIP gaming room is located at the top-tier
MGM Grand Macau Casino in downtown Macau that is operated by the
MGM Grand Paradise S.A. Another Macau VIP gaming facility is
located in the luxury 5-star hotel, the Star World Hotel &
Casino in downtown Macau, which is operated by Galaxy Casino, S.A.
The other VIP gaming room is located at the Venetian
Macao-Resort-Hotel on the Cotai Strip.
Forward-Looking Statements
This press release includes forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements, based upon the current
beliefs and expectations of AERL's management, are subject to risks
and uncertainties, which could cause actual results to differ from
the forward-looking statements.
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