Full House Resorts, a NASDAQ-traded casino operator based in Springs Valley, Nevada, announced that it is still looking to find buyers for its four establishments.
Last Thursday, the Chief Executive Officer of the company spoke to stockholders at a conference organized by the company. Andre Hilliou requested the present stockholders to disregard the statements of a shareholder party lead by Dan Lee, who is the current gaming executive of Full House Resorts.
Hilliou explained that Lee was attempting to change company’s current board layout with one that meets his interests better.
Hilliou delivered a speech during the conference. He did not answer any further questions about this particular issue, stating that it was “sensitive and fluid” subject and therefore, he could not speak about the “consent solicitation effort.” He explicitly stated that the company would for now refrain from adding more information apart from what was already public.
Last month, Full House Resorts announced it would seek potential buyers of the company. It currently has four casinos under its management, one in Lake Tahoe and one in each of the following states: Indiana, Nevada and Mississippi.
In its official financial report the company showed a $800,000 decline in revenue for June, July and September which, compared to the statistics of the same period for last year (over $2 million) shows the decrease has been rapid.
The total earnings of the company for the last nine months amounted to $33 million or a decline of 12% was noticed.
Hilliou explained that the strategic decision to implement better accounting practices in the company, and the tax consolation on its Rising Star casino have eased the financial pressure posed by the regional decline in the gaming industry.
The COO of the company, Mark Miller, also expressed his hopes for the recovery of the regional gaming industry.
Despite the announcement for being put up for sale, Full House Resorts has been active in participating in new casino projects. It is now currently a part of two investment parties which plan to establish gaming facilities in upper New York.
If the projects are completed, Full House is said to manage the casinos under a contract with the other investors. Hilliou said licenses for the casinos are supposed to be obtained during the next two months.
The opposing shareholder group of Mr. Lee holds a bit over 6% of company’s shares, and was given permission by SEC (Securities and Exchange Commission) to organize meetings with other stockholders in order to discuss possible revamp of the board.
Lee’s group requested board seats to be doubled from five to ten.
Lee is supported by the former CEO of the company who owns almost 10% of the shares. The conflict goes on and the future of the company will depend on whether the opposing stockholders groups come to a mutual decision concerning the sale of the company.
