Baymount Incorporated
TSX VENTURE : BYM

Baymount Incorporated

March 04, 2009 16:20 ET

Baymount Provides Fiscal Update

TORONTO, ONTARIO--(Marketwire - March 4, 2009) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) announces that it is working with the Ontario Lottery and Gaming Corporation ("OLG") to complete an amendment to its construction loan agreement for $14.2 million plus accrued interest, which was initially announced on July 9, 2008. The loan is for the construction of the new Quinte Raceway and Slots in Belleville, Ontario. While the principal amount and term of the agreement is expected to be substantially the same, it is expected there will be new operating and financial covenants and other requirements of Baymount and its wholly owned subsidiary Belleville Racetrack Development Corporation ("BRDC"). Baymount and BRDC also have a number of conditions that must be met on a specific timeline prior to any additional funds being drawn against the new construction loan, including the refinancing of the Company's $3 million convertible debentures. BRDC has currently drawn approximately $92,000 of the construction loan.

Baymount also announces that it has entered into a Memorandum of Understanding with Pacrim Hospitality Services Inc. ("Pacrim") for the development of a hotel and water park on the Company's excess lands located adjacent to the proposed new Quinte Raceway and Slots facility. Under the terms of the agreement, Pacrim has exclusivity to conduct due diligence and negotiate with Baymount or its assignee for the development of a hotel and water park on these lands with an expiration date of April 24, 2009. Pacrim has advised Baymount that it is now engaged in developing preliminary design concepts for the proposed facility. Pacrim is one of the largest privately-owned hotel management and development companies with a managed portfolio of 57 hotels throughout Canada and the United States.

The Company has also entered into an amended agreement on the sale of its excess lands. The closing of the transaction has been extended to April 15th, 2009. The purchaser and the Company have agreed to transfer the lands to a special purpose vehicle to be named for the proposed development - "Prince Edward Gateway Corporation" ("PEG"). PEG is in the process of completing a Master Plan for the entire development, which, in addition to the proposed hotel/waterpark, is excepted to also call for additional recreational, retail and hospitality elements. The Company has agreed to subscribe for up to fifty percent of PEG and in the event that the Company does not move forward with the development of the new Quinte Raceway and Slots, the Purchaser's deposit will be granted subordinated mortgage security.

Additionally, the Company is currently in negotiations with 2062480 Ontario Inc., the Trustee representing the convertible debenture holders. The $3 million of convertible debentures were due December 31st, 2008. Under a previous agreement, the Company prepaid the interest up to February 28th, 2009. The Company is working with the Trustee and debenture holders to discharge, amend or extend the outstanding debentures and has retained an investment firm, subject to Board approval, to assist with refinancing the convertible debentures as well as raising additional capital for the Company. Any extension, amendment or refinancing of such debentures will be subject to receipt of the approval of the TSX Venture Exchange.

The National Capital Region Harness Horse Association has also notified Baymount that they have agreed in principle to our negotiated contract and that they will put it forward to a ratification vote on March 11th, 2009.

Baymount also announces that its offering of up to $1.5 million of units at price of $0.035 per unit (as previously announced on December 23, 2008 and January 28, 2009) is ongoing. To date, an aggregate of approximately $634,000 in gross proceeds have been raised and the Company continues to make contact with additional potential subscribers. Each unit will consist of one common share of Baymount and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $0.07 for a period of 12 months from closing. Closing is expected to continue to occur in multiple tranches, as subscription proceeds and supporting documentation are received. The proceeds from this subscription will be used to build and develop the Quinte Raceway and Slots, a new racetrack and slot facility to be located in Belleville, Ontario and for working capital purposes.

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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Baymount Incorporated
    Mr. Graham Simmonds
    President and Chief Executive Officer
    (416) 979-2881 Ext.223
    Email: graham@bym.ca
    Website: www.bym.ca