Affinity Gaming SPAC Partner Boosts Offering Size to $175 Million

Published on: 5, 2021, 09:12h february.

Final updated on: 5, 2021, 10:46h.(* february)

Todd Shriber

Earlier this week, the blank-check firm sold 17,500,000 units at $10.00 per unit, raising $175 million in gross proceeds. That’s above the $150 million to $172.5 million the SPAC expected to raise.

Affinity Gaming SPAC
Affinity Gaming SPAC
The company is a check that is blank formed for the true purpose of effecting a merger, money stock market, asset purchase, stock purchase, reorganization or comparable company combination with more than one businesses,” according to a statement. “While the organization may pursue an acquisition possibility in almost any industry or sector, the organization promises to concentrate on purchase possibilities into the video gaming and hospitality sectors.”

Gaming & Hospitality issued 2.5 million more devices than at first anticipated. Each device is made up of one share of typical equity and a third of a warrant redeemable at $11.50.

distinctive SPAC Methodology Happening right here

Regardless of industry, standard running procedure for blank-check clothes would be to raise money via an IPO then search for a merger target, paving the way in which for the obtained company to get general public.

Gaming & Hospitality is coming along with Affinity Gaming, the master of the Silver Sevens Casino in vegas. Nonetheless, Affinity is not the ongoing company going public. Rather, the SPAC and the gaming company are combining forces, tapping the gaming that is latter’s to locate another merger partner.

In a regulatory document posted prior to the SPAC’s IPO, Gaming & Hospitality stated there’s a solid addressable market in distributed and regional video gaming — two areas that mesh well with Affinity’s core competencies.

Affinity additionally runs Buffalo Bill’s, Rail City Casino, and Primm Valley Resort & Casino in Nevada. Additionally has the Lakeside Resort Casino in Iowa additionally the Mark Twain Casino and St. Jo Frontier Casino in Missouri.

“Target organizations that individuals are dedicated to in this sector consist of, but aren’t limited by, local video gaming, distributed video gaming, online gaming/sports gambling, and video gaming technology and gear. In specific, we think there clearly was a robust market that is addressable regional and distributed gaming,” according to the SPAC.

SPAC Fever Continues in Gaming Industry

Blank-check companies have two years to execute a deal before being forced to liquidate shares and return the cash to investors.

If the start to 2021 for the gaming/SPAC combination is an harbinger that is accurate Gaming & Hospitality shareholders won’t become waiting 24 months for a merger statement.

Just this week, $7.7 billion in discounts blank-check that is involving gaming companies were announced. On Tilman Fertitta’s Fertitta Entertainment said it’s merging with blank-check firm FAST Acquisition (NYSE:FST) in a transaction valuing the Golden Nugget operator at $6.6 billion.

Later monday That, Acies Acquisition Corp. (NASDAQ:ACAC) said it’s merging with social casino operator Playstudios in a $1.1 billion deal.

Those day announcements come after three gaming companies went public in December following marriages that are SPAC

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