Baymount Incorporated
TSX VENTURE : BYM

Baymount Incorporated

November 04, 2009 16:23 ET

Baymount Announces Further Updates

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2009) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) announces that further progress is being made towards completing due diligence on its previously announced transaction with Plaza Gaming and Entertainment Corp. ("Plaza"), whereby Plaza will acquire a 75% equity interest in the Company's new Quinte Racetrack and Slots facility ("QRS") in Belleville, Ontario for a gross investment of $6 million (for further details on this transaction, please refer to the Company's press release of August 18, 2009). Both parties are currently amenable to extending the closing date and remain committed to working through final due diligence items and closing the transaction as expeditiously as possible. Further details regarding closing schedules will be announced once determined.

In addition to this progress, Baymount is pleased to announce additional agreements relating to the development of QRS and its related facilities. First, Baymount announces that it has entered into an agreement with Labatt Brewing Company Limited ("Labatt") whereby Baymount has granted Labatt a 90 day exclusive to review the opportunity of establishing a sponsorship and branding presence at the QRS and/or on the Company's 55 acres of excess lands that are to be used for the development of the Prince Edward Gateway family entertainment destination, which plans to feature a new hotel and water park, in addition to many other amenities.

With respect to these excess lands, Baymount is also pleased to announce that CB Richard Ellis has been retained to develop a feasibility study for the hotel and water park development that is proposed for this site. Baymount continues to hold a 100% interest in these excess lands, which are adjacent to the new QRS in Belleville, Ontario. These lands are not part of the transaction with Plaza and the Company continues to work with its prospective partners in developing these lands into the Prince Edward Gateway family entertainment destination.

Mr. Graham Simmonds, President and CEO of Baymount stated, "This past month we have made substantial progress in working through the facility designs, construction costs and budgeting of the QRS and the Prince Edward Gateway family entertainment destination. We have also had a number of very positive meetings with stakeholders and there remains tremendous support towards completing this transaction and beginning the next phase of development for our projects."

Baymount further advises that it will not be proceeding with its previously announced unit offering for gross proceeds of up to $2,000,000 at this time (for details concerning that offering, please refer to the Company's press release dated September 30, 2009). 

About Plaza

Plaza is a leading gaming and entertainment company with investments in Community Gaming Centres and Bingo Centres in Canada.

About Baymount

Baymount seeks out and develops opportunities within the horseracing industry. It is the Baymount philosophy to create entertainment destinations for consumers while providing our investors with a vehicle that allows them to participate in the growth of Canadian gaming at racetracks.

Baymount's wholly-owned subsidiary, Belleville Racetrack Development Corporation ("BRDC"), has an agreement with the Belleville Agricultural Society to build a facility to relocate the Quinte Exhibition and Raceway in Belleville, Ontario. QER is one of the 18 racetrack licenses in Ontario eligible to participate in Ontario's Slots-at-Racetracks program. In 2006, the Alcohol and Gaming Commission of Ontario found BRDC suitable to act as Landlord for the proposed OLG gaming premises to be located at the new QER. The Company has also received Preliminary Approval for a License to Operate a Racetrack from the Ontario Racing Commission.

The use of proceeds for the Plaza investment will be to satisfy the balance of the capital requirements to complete the construction of the new QRS and to make payments to the Company's convertible debenture holders. Baymount will also be entitled to receive a bonus payment based on the future performance of the new QRS. The transaction remains subject to due diligence, gaming industry approval and TSX Venture Exchange approval, as well as the approval of Baymount shareholders.

ON BEHALF OF BAYMOUNT INCORPORATED

Graham Simmonds, President & Chief Executive Officer

For additional information please visit the company's website at www.bym.ca.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

Contact Information

  • Baymount Incorporated
    Mr. Graham Simmonds
    President and Chief Executive Officer
    416-843-2881
    graham@bym.ca
    www.bym.ca