Business & Finance
Business and Finance
Business and Finance
Fri, January 2, 2009
Wed, December 31, 2008 Baymount Incorporated: Baymount Provides Year End Update
TORONTO, ONTARIO--(Marketwire - Dec. 31, 2008) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) announces that it has closed an initial tranche of 18,112,855 units for gross proceeds of approximately $634,000 under the Company's recently announced private placement offering. Insiders participated for approximately 20% of the units issued. The closing was completed on a non-brokered basis and no finders' fees were paid. In accordance with applicable securities laws, the securities comprising the foregoing units are subject to a four-month hold period that will expire on May 1, 2009. The Company plans to continue to market the balance of the units in early 2009. The total offering is for up to $1.5 million of units at price of $0.035 per unit. Each unit consists 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. 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.
The Company has also granted an extension to the closing of its excess lands located in Belleville, Ontario to February 28, 2009. The Company has refinanced its existing mortgages on these excess lands, replacing the two mortgages totaling $1.85 million that became due on December 1st, 2008. The new mortgage is for $2.5 million for a term of two years and is at an interest rate of 15%. This mortgage is transferable with the sale of the excess lands.
Additionally, the Company has entered into an extension agreement with 2062480 Ontario Inc., the Trustee representing the holders of Baymount's outstanding $3 million of convertible debentures, which were due to be repaid on or before December 31st, 2008. Under the agreement, the Company has prepaid interest owing up to February 28th, 2009 to coincide with the sale of the Company's excess lands.
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.
