Elray Gaming announces that it has concluded a definitive agreement to Acquire Golden Match, a Macau Gaming Company
NEW YORK, May 4, 2012 /PRNewswire/ -- Elray Resources Inc. (ticker ELRA.OB) announced today that it has entered into an agreement to acquire all of the outstanding shares of Golden Match, a company incorporated in the British Virgin Islands, following a letter of intent which was signed on March 22, 2012.
Golden Match is an investment holding company. Its principal business activity is to hold a profit share agreement with a VIP Room Gaming Promoter, under which it receives 80% of the profit stream from the Promoters. The Promoter currently participates in the promotion of many, major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world.
VIP gaming operations in Macau consist of VIP rooms that cater exclusively to high-limit Baccarat table games. Baccarat is the largest source of gaming revenue in Macau, Gaming Promoters in Macau have historically maintained the majority of VIP customer relationships. The Promoters secure VIP rooms through agreements in which they receive either a commission on turnover or a percentage of the casino net gaming win or loss on a pre-gaming tax basis.
About Golden Match:
Golden Match is a company that has negotiated a profit sharing agreement with CALI Promocao de Jogos Sociedade Unipessoal Lda. (CALI), a company duly incorporated under the laws of the Special Administrative Region of Macau.
CALI promotes Casinos in Macau SAR, pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macau (DICJ).
With immediate effect Mr. Lao Sio I. is appointed Chairman of the Board of Directors with Brian Goodman remaining as Chief Executive.
Upon signing the agreement, Mr. Lao Sio I. commented "I am excited to be part of this new venture which will enable us to take advantage of exciting growth opportunities specifically in Asia and the benefits provided by Elray will enable me to exponentially grow the gaming business. Macau has become the Gambling Capital of the World and continues to grow at a rapid rate, new casinos are opening, existing ones are expanding with more and more people visiting Macau, we will now be able to pursue these opportunities."
Brian Goodman, current CEO stated that "Elray will now be well positioned to develop and grow as a gaming entity internationally. The Macau opportunity together with the US listing will enable the company to raise growth capital, acquire other gaming promoters in Macau as well as in other jurisdictions and create a profitable company, creating enormous institutional worth whilst aggressively increasing the brand value on a global scale returning excellent returns for shareholders, overall an excellent result for Elray shareholders."
Mr. Lao Sio I. – Chairman of the Board
Mr. Lao Sio I. is a highly educated Chinese Citizen and a resident of Macau. After graduating from the Macau Polytechnic Institute Mr. Lao Sio I. (39 years old) completed numerous post graduate courses including diplomas in English as well as a number of technology related courses.
Following a successful career in local government in Macau, Mr. Lao Sio I. entered the gaming industry in 2003, initially as a Casino VIP host and in 2005 investing in a VIP room as a senior partner. Since that time Mr. Lao Sio I. has developed a reputation of being one of the leading, most influential and respected gaming promoters in the GCR (Greater China Region), having negotiated deals with the largest Casinos in Macau.
As Chairman, Mr. Lao Sio I. will be leading the future development and growth of Elray.
Macau is part of the territory of the Peoples Republic of China, located on China's southeast coast to the west of the Pearl River delta. The Macau Special Administrative Region ("MSAR") was established on December 20, 1999, after Macau was administrated by Portugal for more than 400 years.
Macau is one of the most rapidly growing economies in Asia and is the only territory within China where casino operations has been legalized. In 2011, total revenues generated by casinos in Macau were approximately $33.5 billion, more than four times the revenues generated by the Las Vegas strip during the same period (source: Macau Gaming Inspection and Coordination Bureau). The Macau gaming industry has grown at an average of 37.5% per annum over the last 5 years. (2007 to 2011, source: Macau Statistics and Census Bureau)
Elray is an established Gaming entity which owns and licenses Gaming Intellectual Property, Gaming Domains, Trademarks and Player Databases.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.