SOURCE: Caribbean Casino and Gaming Corp.

April 06, 2010 11:45 ET

Caribbean Casino & Gaming Corp. Confirms Intentions for Regulation A Filing and Considers Debt Funding Options to Hedge Potential Inflationary Markets During Expansion

MIAMI, FL--(Marketwire - April 6, 2010) -  Caribbean Casino and Gaming Corp. (PINKSHEETS: CGAQ), announced today its intentions to complete a Regulation A filing and entertain Debt Funding to hedge the potential inflationary market conditions foreseen. The decision is based upon the funding requirements for additional expansion, as requests to duplicate the successful business model at other locations throughout the Dominican Republic and abroad continue, while the US Economy continues to show inflationary risk with higher costs for capital. 

CGAQ's business model has offered near profit results for shareholders within the first 68 days of business, the first ever ESPN Deportes Boxing Broadcast in the Dominican Republic and continues to be the main attraction for entertainment in Sosua Bay, DR. The business model has created demand by other locations from Santo Domingo, DR to Suriname, South America.

CEO Steven Swank stated, "We always entertain financing offers for expansion, however with our shareholders in mind, we never considered making a commitment until now. As the economy recovers, jobs increase and the Federal Reserve dilutes the value of the dollar, it appears that inflation could be a major factor in acquiring affordable capital in the future. Therefore, we are in discussions to raise capital now to hedge this risk while following through with expansion efforts which will offset costs and continue to benefit the stockholders. Finally, any consideration of issuing debt would certainly include the company's ability to repay such debt in a timely fashion."

CGAQ also noted investor concerns of possible dilution of shareholders wealth, the cost of debt overburdening the company and providing additional marketing of its equity. Mr. Swank continued, "By utilizing a Regulation A Filing, CGAQ will have the opportunity to increase its economies of scale through expansion, increase its marketing budget and create greater demand for the stock with the ability to solicit interest in the stock to the investing public via advertising vehicles."

Caribbean Casino and Gaming Corp. will hold an investors conference on June 25th, 2010. Immediately following the conference, a complimentary dinner with DeCuba Presents and the Boxers will be held at the Sosua Bay Resort.

About Caribbean Casino and Gaming Corp:
Caribbean Casino and Gaming Corp (PINKSHEETS: CGAQ) is the owner and operator of the Sosua Bay Grand Casino. The corporation is focused on becoming a leader in the Caribbean for gaming and entertainment to include live betting in its partnership with Kenilworth Systems Corporation from cameras located above tables within the Sosua Bay Grand Casino. Not only will Caribbean Casino and Gaming Corp. offer world class gaming and accommodations within its facilities for those visiting our properties, but also allow patrons to wager (where allowed) from the comfort of their own home or hotel room. The casino is now the centerpiece in the Sosua Bay Resort at Puerto Plata, Dominican Republic, the largest and most populated Caribbean Island.

FORWARD-LOOKING STATEMENT:
This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this report are made as of the date hereof and Caribbean Casino and Gaming Corporation undertakes no obligation to update such statements.

Contact Information

  • Caribbean Casino and Gaming Corp
    Tyler Cornell
    Investor Relations
    Email Contact
    631-765-8762