Casino News

Gateway Casinos Marriage with Catalyst Capital Faces Trying Times

Gateway Casinos & Entertainment is striving to be listed on the New York Stock Exchange, as this goal has been on the table for the past nearly two years. April this year was supposed to see the completion of the deal, which was postponed for June 30. Days ahead of this date, Leisure Acquisition Corporation voted for an extension to December 1.

Catalyst Capital Group wanted to merge the casino operator with its US-based Leisure Acquisition Corporation and the plans for this were unveiled in the last days of 2019. The publicly traded special purpose acquisition company is striving to expand its footprint and subsequently list Gateway Casinos on the NYSE, one of the long-time goals for the Canadian casino leader.

Uncertainty Ahead

For several months, Gateway Casinos and Catalyst Capital Group have been working on this merger that could reshape the gaming field of North America. It amounts to some CA$1.5 billion and it was supposed to see its conclusion back in April 2020. The unprecedented situation eventually made that impossible which called for its extension until the last days of June. Now it is all a waiting game for the two parties involved.

Leisure Acquisition Corporation held a vote on the subject and the predominant opinion was that the deadline should be extended to the beginning of December. The stakeholders also reminded that some action would have to be made ahead of July 15, or else, either of the two parties could exit the arrangement and seek new opportunities for growth and development. Uncertainty seems to veil the agreement.

It could be recalled that the first days of this year revealed more on the subject. Gateway Casinos & Entertainment was supposed to welcome its new Chief Executive Officer. Marc Falcone was supposed to become the Chief Executive Officer and President of the hospitality company ready to publicly trade.

December 1 Might Bring New Deadline

The unprecedented situation might have impacted the liquidity of both companies which could be causing the delays experienced. It should be taken into account that all of Gateway Casinos’ brick-and-mortar locations have been closed over the past nearly four months. Those 27 casino venues and gambling halls are sprinkled across Alberta, British Columbia, and Ontario.

As of now, only two of them have received a green light for operation. The casino operator is focused on the preparation for the official reopening of the remaining locations, as taking into account all safety measures is crucial for the normal operation and patrons’ safety down the road. It could be recalled that November 2018 saw the casino operator list for a United States-facing public offering.

That was only the first step of an extensive process envisioning a better and brighter future for the British Columbia-based company. Initial projections of that public offering were that it would be able to amass some US$400 million. Back then, it was also clear that the company was valued at US$2.5 billion. It could also be recalled that the year 2012 saw another futile attempt at going public.