(Toronto: May 9, 2017) Quantum International Income Corp. (the “Corporation” or “Quantum”) (TSXV: QIC) announces that it has entered into separate asset purchase agreements with Triple 7s Amusement, LLC (“Triple 7s”) and Lucky Star Amusement, Inc. (“Lucky Star” and together with Triple 7s, the “Targets”), in each case, dated May 8, 2017 pursuant to which Lucky Bucks, LLC, a limited liability company indirectly controlled by the Corporation (the “Purchaser”), will acquire certain of the assets comprising the businesses of the Targets (the “Acquisitions”). For additional details regarding the Targets, see the Corporation’s news releases dated January 30 and 31, 2017.
“The acquisition of Triple 7s and Lucky Star increases our gaming footprint in the Georgia market considerably. As a part of our overall consolidation strategy in Georgia and our platform business Lucky Bucks, we are now positioned to benefit from considerable operational synergies in these and all of the acquisitions we have previously announced” said Manu K. Sekhri, Chief Executive Officer of Quantum.
The respective purchase price for the Acquisitions (collectively, the “Purchase Price”) are US$4.2M in respect of the Triple 7s assets and US$1.62M in respect of the Lucky Star assets, to be paid in cash on the closing date of the Acquisitions (the “Closing Date”), plus an additional one-time payment which is payable to each of the Targets following the Closing Date if, within six months of the Closing Date, revenue is generated by assets of the Targets that were not generating revenue as of the Closing Date. The closing of each transaction is not conditional on the closing of the other.
Notwithstanding the above, the Corporation strongly cautions investors that the completion of the Acquisitions remains subject to certain conditions, including but not limited to, the Corporation obtaining funding from its lender in an amount sufficient to pay the Purchase Price (the “Acquisition Financing”), as well as certain regulatory approvals required in connection therewith, including the approval of the TSX Venture Exchange. As of the date hereof, the Corporation has not secured such Acquisition Financing, and there can be no guarantee that such Acquisition Financing will be obtained.
Additionally, the Corporation advises investors that the Georgia Lottery Corporation recently conducted an auction of licenses for Class A and Class B Coin Operated Amusement Machines, which licenses were sold at auction for what the Corporation has been advised are the highest prices on record for such an auction. The Corporation cautions investors that this increased level of interest could pose challenges to the Corporation in completing previously announced acquisitions, as well as sourcing additional acquisitions of digital skill-based gaming terminal operators in Georgia.
About Quantum International Income Corp.
The Corporation seeks opportunities to acquire and grow businesses in order to generate stable distributions for its shareholders, along with capital appreciation. The Corporation seeks to acquire operating businesses with a proven track record, an opportunity for growth and whose management wishes to continue to operate the business going forward. The Corporation’s investment approach is to grow through the acquisition of “platform” businesses that are consistent with its business strategy and acquisition criteria and then to continue to build revenues and earnings within these businesses. Potential acquisition targets may be private or public companies in a variety of industries. Acquisition of all or a majority of the ownership of each such business is preferred. Value will be created by seeking out high growth, high margin opportunities where the acquired businesses can maintain and develop the deep knowledge, expertise and understanding of their customers’ needs required to deliver superior service and command higher pricing and margins than the competition.
More information on Quantum is available at www.quantumincomecorp.com.
|For further information please contact Quantum:
Tel. (416) 477-3419
Tel. (416) 477-3411
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This release contains certain information which, as presented, constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as “expect” and “intend”, statements that an action or event “may” or “will” be taken or occur, or other similar expressions. These statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Corporation to control or predict, and which may cause Quantum’s actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, risks related to the inability by Quantum to complete either or both of the Acquisitions or obtain the Acquisition Financing, as well as other factors discussed in the Corporation’s annual information form dated July 23, 2015, (the “Annual Information Form“) which is available on SEDAR under Quantum’s profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Annual Information Form, and as otherwise disclosed from time to time on SEDAR under Quantum’s profile at www.sedar.com.
Unless otherwise specified in this release, information contained in this release is current as of the date of this release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. The Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.