Holders of approximately half of the company's 40 million outstanding shares waived their right to participate in the offering, but FXRE chairman and chief executive Robert F.X. Sillerman and the Huff Alternative Fund LP have agreed to purchase shares that are not otherwise subscribed for the rights offering. As a result of the "backstop" agreements, the company expects to sell all of the shares being offered in the offering, resulting in gross proceeds of $98.7 million.

FX Real Estate and Entertainment owns 17.72 contiguous acres of land on the southeast corner of Las Vegas Boulevard and Harmon Avenue, which it refers to as the Park Central site. In July, FX paid Africa-Israel Investments Ltd. $180 million for the 50% interest in the property it did not already own. The property is currently occupied by a motel and several commercial and retail tenants. FXRE intends to pursue a hotel, casino, entertainment, retail, commercial and residential development project on the site that would have an Elvis Presley theme.

FXRE previously entered into license agreements with Elvis Presley Enterprises Inc., an 85%-owned subsidiary of publicly traded CKX Inc., and Muhammad Ali Enterprises LLC, an 80%-owned subsidiary of CKX, which allows it to use the intellectual property and certain other assets associated with Elvis Presley and Muhammad Ali in the development of its real estate and other entertainment attraction-based projects. The license agreement with Elvis Presley Enterprises also grants FXRE the right to develop one or more hotels as part of the master plan of Elvis Presley Enterprises Inc. to redevelop the Graceland property and surrounding areas in Memphis.