QualityStocks would like to highlight Asia Entertainment & Resources (NASDAQ: AERL), formerly known as CS China Acquisition Corp. The company acquired Asia Gaming & Resort Limited ("AGRL") on February 2, 2010. AERL is an investment holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, and is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL's VIP room gaming promoters currently participate in the promotion of three major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One VIP gaming room is located at the top-tier 5-star hotel, the Star World Hotel & Casino in downtown Macau, and another is located in the luxury 5-star hotel, the Galaxy Macau™ Resort in Cotai, each of which is operated by Galaxy Casino, S.A. The third VIP gaming room is located at the Venetian Macao-Resort-Hotel in Cotai.
In the company’s news yesterday,
Asia Entertainment & Resources Ltd. announced that it has entered into a non-binding memorandum of understanding to acquire Bao Li Gaming Promotion Limited, a Macao-based VIP gaming promoter that currently operates one room with five tables at City of Dreams Macau, a Melco Crown property. This casino offers both the fixed commission and the revenue sharing remuneration model, and this VIP room will operate under the revenue sharing model.
Subject to due diligence and the customary closing conditions, Asia Entertainment expects to close the transaction by September 30, 2012. Asia Entertainment is expected to pay approximately $15 million for 100 percent of Bao Li Gaming’s operations. Additionally, if its ‘rolling chip turnover’ is at least $2.5 billion in each of the three years ending December 31, 2013, 2014 and 2015, its shareholders would receive three additional installments of $13 million and 625,000 ordinary shares of AERL. The shareholders can also receive additional incentives if those targets are exceeded.
This proposed deal is an important one for Asia Entertainment. In addition to its presence in the Galaxy and Las Vegas Sands casinos, it now will have a presence with another gaming license holder (Melco Crown). Upon completion of the deal, Asia Entertainment will have 34 tables in four VIP rooms.
QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.
To sign up for The QualityStocks Daily Newsletter, please visit www.QualityStocks.net
Please read FULL disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.net
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.