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December 30, 2019 - 11:17 AM
VANCOUVER - Gateway Casinos and Entertainment Ltd. is expected to name a new chief executive following a proposed deal that will create a publicly traded company valued at nearly $1.5 billion.
Current Gateway chief executive Tony Santo will retire and be replaced as CEO and president by Marc Falcone, who has held a variety of executive positions at U.S. gaming and hospitality companies for more than a decade.
Falcone is currently director of Leisure Acquisition Corp., a special purpose acquisition company listed on Nasdaq that will be acquired by Gateway's parent GTWY Holdings Ltd., which plans to have a New York Stock Exchange listing.
Under the transaction, Leisure's shares will be converted into shares of GTWY and Leisure warrants will be exercisable into GTWY shares for US$11.50 each. Leisure shares were at US$10.40 at midday, up five cents from the previous close.
Existing GTWY shareholders are expected to remain the largest investors in the combined company, subject to approvals from shareholders, regulators and government agencies including Ontario Lottery and Gaming Corp.
The current majority owner of GTWY is Catalyst Capital Group Inc., a private Toronto-based firm. Catalyst partner and managing director Gabriel de Alba will remain executive chairman of Gateway.
Gateway currently operates 25 gaming and entertainment destinations in British Columbia and Ontario, including a resort on the Rama First Nation, about 150 kilometres north of Toronto.
This report by The Canadian Press was first published Dec. 30, 2019.
Note to readers: This is a corrected story. An earlier version described the transaction as a restructuring.
News from © The Canadian Press, 2019