Baymount Incorporated

Baymount Incorporated

January 22, 2010 12:56 ET

Baymount Announces New Equity Investor for Quinte Raceway and Slots Development

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2010) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) Announces That it has Reached an Agreement With Macallan Equity Inc. ("Macallan") to Provide Financing for the Company's Subsidiary, Belleville Racetrack Development Corporation ("Brdc"). Under the Agreement, Macallan Will Provide Brdc With an Initial Advance of $3 Million and Will have the Right to Acquire a 50% Equity Interest in Brdc Upon Delivery of a Further $1 Million. 

The initial advance will be used for the purposes of refinancing the Company's outstanding secured convertible debentures and certain liens registered against BRDC, and to enhance the working capital positions of BRDC and Baymount. Macallan has deposited the initial $3 million advance in escrow with Baymount's solicitors. That advance is expected to be released during the week of January 25th, 2010 against a mortgage in favour of Macallan once discharges and releases from the convertible debenture holders and consents from other lienholders have been delivered to BRDC. Upon satisfaction of certain further conditions Macallan may then contribute an additional $1 million and convert the initial $3 million advance to a 50% equity interest in BRDC. That transaction is subject to entry into by BRDC of construction agreements and construction loan agreements on terms acceptable to Macallan, confirmation of minimum working capital in BRDC of not less than $100,000 and other standard conditions, including but not limited to completion of due diligence and receipt of all applicable regulatory approvals.

This transaction replaces the previously announced investment from Plaza Gaming and Entertainment Corp. that did not close as contemplated late last year.

Baymount continues to hold a 100% interest in its 55 acres of excess lands adjacent to the new QRS in Belleville, Ontario. These lands are not part of the transaction with Macallan and the Company continues to work with its prospective partners in developing these lands into the Prince Edward Gateway family entertainment destination, which plans to feature a new hotel and water park in addition to many other amenities. 

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.


Graham Simmonds, President & Chief Executive Officer

For additional information please visit the company's website at

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.

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. 

Contact Information

  • Baymount Incorporated
    Mr. Graham Simmonds
    President and Chief Executive Officer