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LAS VEGAS-Full House Resorts Inc., which previously has only managed casinos, has completed its acquisition of Stockman's Casino in Fallon, NV and the adjacent Holiday Inn Express. The assets were acquired from the James R. Peters Family Trust for $25.5 million.
The transaction comes one week after receiving final approval from the Nevada gaming Commission to own and operate the property, which has approximately 8,400 sf of gaming space, a fine dining restaurant and a coffee shop. The adjacent Holiday Inn has 98 guest rooms, indoor and outdoor pools, sauna, fitness center and meeting rooms.
"The acquisition of Stockman's creates the foundation for our entry into the local casino market," says Full House CEO Andre Hilliou. "It provides a more stable long-term revenue stream while at the same time providing a training base for our upcoming tribal operations."
Full House manages Midway Slots and Simulcast at the Delaware State Fairgrounds in Harrington, DE. It also is working on developing casino-resorts in partnership with the Nottawaseppi Huron Band of Potawatomi Indians in the Battle Creek area of Michigan, with the Nambe Pueblo of New Mexico and with the Northern Cheyenne Nation of Montana.
Full House is funding the transaction with proceeds from its upcoming 6.2 million share offering (at $3.25 per share), cash on hand and $16 million in debt financing. The purchase price of Stockman's was to increase beyond the $25.5 million if the operation exceeded certain financial targets during the 12 months prior to closing of the transaction. Full House said last week that it expected the purchase price to increase between $400,000 and $800,000. In this week's announcement of the closing of the transaction, the increased cost was not mentioned.
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