Baymount Incorporated

Baymount Incorporated

October 18, 2010 17:36 ET

Baymount Announces Debenture Offering

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) is pleased to announce a proposed non-brokered offering of convertible unsecured debentures ("Debentures") for aggregate gross proceeds of up to $3,000,000. The Debentures will mature on the date that is three (3) years from the date of issuance (if not otherwise converted) and bear interest at a rate of 8% per annum, which shall be accrued and paid upon maturity or conversion. The Debentures shall be convertible into common shares of the Corporation ("Common Shares") at a conversion rate of $0.15 per share at any time prior to maturity. The Company will retain the discretion to force the conversion of the Debentures at the foregoing price in the event that the average closing price of the Company's common shares over a period of 25 trading days exceeds $0.30. The Debentures will include a negative pledge on the part of the Company not to incur any new secured debt obligations prior to repayment or conversion, other than normal trade payables and obligations and any construction financing (new or existing) required by the Company's subsidiary, Belleville Racetrack Development Corporation, for the development of the new Quinte Raceway and Slots facility. The proceeds of this offering will be used to fund the development of the Company's project in Belleville, Ontario, to fund existing payables and for general working capital purposes. It is anticipated that the Debentures and Common Shares issuable upon conversion of the Debentures will be subject to a four-month hold period.

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 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.


Graham Simmonds, President & Chief Executive Officer

For additional information please visit the company's website at

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