TrackPower, Inc.
OTC Bulletin Board : TPWR

TrackPower, Inc.

April 06, 2006 10:25 ET

TrackPower Announces Loan Agreement For Tioga Downs Racetrack

TORONTO, ONTARIO--(CCNMatthews - April 6, 2006) - TrackPower, Inc. (OTCBB:TPWR), today announced that on March 30, 2006, Tioga Downs Racetrack obtained a bridge loan from RCG Longview II, L.P. in the principal amount of $20,000,000. The Loan is secured by Tioga Downs Racetrack LLC's interest in the Tioga Downs Racetrack, as well as an assignment of income and revenue from the Tioga Downs Racetrack.

TrackPower, Inc. owns a 20% membership interest in American Racing and Entertainment, LLC. American Racing owns 100% of Tioga Downs Racetrack, LLC, which owns the Tioga Downs Racetrack in Nichols, New York.

The Loan requires monthly payments of interest only at a fixed interest rate of 12% through April 1, 2007. On April 1, 2007, the Loan matures and all principal and interest becomes due and payable in full.

A principal owner of Southern Tier Acquisitions II, LLC, a member of American Racing, has guaranteed the principal, interest and other expenses payable under the Loan documents. The Amended and Restated Operating Agreement of American Racing provides that each member of American Racing, including TrackPower, Inc., shall reimburse the Guarantor for any payments it is required to make under the Guaranty limited to their respective percentage interest.

"We are pleased to have secured this important financing as it allows American Racing to complete its projects as scheduled." stated Edward Tracy, CEO of TrackPower.

This release includes projections of future results and "forward-looking statements" as that term is defined in Sections 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations are disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.

Contact Information

  • TrackPower, Inc.
    John G. Simmonds
    (905) 773-1987 ext. 223
    TrackPower, Inc.
    Edward M. Tracy
    (905) 773-1987 ext. 226