TORONTO, May 19 /CNW/ - ACADEMY CAPITAL CORP. (TSXV: ACY.P) ("Academy"), a Capital Pool Company, is pleased to announce that Diversified Racing Investments Inc. has changed its name to Baymount Corporation ("Baymount"). As previously announced, Academy has agreed to purchase all of the issued and outstanding shares of Baymount.
The new name better reflects the company's focused racing and gaming strategy, including the development and acquisitions of racetrack properties that provide patrons with both an excellent racing product as well as other gaming related entertainment. Baymount continues to define itself as an investment opportunity for those interested in participating in the tremendous growth and opportunities in the horseracing industry.
We are also pleased to announce that Baymount has increased its interest in Wheat City Horse Park Corporation ("WCHPC") from 42.5% to 100%. In this regard, Baymount entered into an agreement with the Wheat City Horse Park Committee, Manitoba Standardbreds Sires and Breeders Association ("MSSBA"), the Manitoba Harness Horseman Incorporated ("MHHI") whereby they agreed to exclusively support WCHPC and Baymount in their efforts to establish and develop the proposed racetrack in Brandon. Any rights of MSSBA or MHHI to an interest in WCHPC were extinguished and each entity received 25,000 common shares of Baymount. Each of MSSBA and MHHI have the right to nominate one director to the board of WCHPC.
Baymount acquired the rights to the remaining 42.5% of WCHPC from TrackPower, Inc. in exchange for 500,000 share purchase warrants exercisable for one year from vesting, entitling TrackPower to purchase common shares in the capital of Baymount. Of these warrants, (i) 100,000 have vested and are exercisable at a price of $0.40 per common share until May 11, 2006; (ii) 200,000 are exercisable at a price of $0.60 per common share and only vest on the date that WCHPC receives regulatory approval for a horseracing license in the Province of Manitoba; and (iii) 200,000 are exercisable at a price of $0.80 per common share and only vest on the date that WCHPC receives from its auditors an audited consolidated financial statement evidencing that WCHPC's cash flow for the previous financial year was positive.
The result of this acquisition is that Baymount, through wholly-owned WCHPC, now holds all of the rights in the proposed Brandon racetrack project.
In addition, Baymount has divested itself of its 75% interest in DR2 Realty Inc. (operator of the Campbellville Training Center) and its interest in DR2 Racing Inc. (owner of a horseracing operation). These interests were seen as non-core to the company's more focused racetrack and gaming strategy.
About Academy
Academy and Baymount have entered into a Share Exchange Agreement whereby Academy will acquire all of the issued and outstanding securities of Baymount, which transaction is proposed to be Academy's qualifying transaction pursuant to the policies of the TSX Venture Exchange (the "Exchange"). Academy and Baymount are preparing an Initial Filing Statement for submission to, and review by, the Exchange.
About Baymount
Founded in 2003, Baymount has made strategic investments within the equine industry. Baymount has an agreement with the Belleville Agricultural Society to build a facility to relocate the Quinte Exhibition and Raceway in Belleville. Through its wholly owned subsidiary, WCHPC, Baymount is also pursuing a standardbred racing license for the development of a new track and horse park in Brandon, Manitoba.
Baymount also has the exclusive right to market Instant Racing across Canada. Instant Racing is a patented electronic horseracing and pari-mutuel wagering system that emulates the very successful slot machine experience. The product is successfully introducing horseracing to non-core customers in the United States.
Baymount also is the owner of the FasTrack information product, a proprietary horseracing information product with an easy-to-use design that can be used to introduce new fans to the sport of horseracing.
Other Information
Completion of the Qualifying Transaction is subject to a number of conditions including, but not limited to, the satisfaction of the minimum listing requirements of the Exchange and Exchange approval of the Qualifying Transaction. There can be no assurance that the Qualifying Transaction will be completed as proposed, or at all. The Qualifying Transaction will be an arms' length transaction.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a Capital Pool Company should be considered highly speculative.
The Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.
http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=63110
http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=21358
For further information please contact:
Mr. Graham Simmonds,
President, Baymount Corporation,
(416) 979-2881 x223, (416) 979-6708 (fax), graham@baymountcorp.com
Mr. Yoel Altman,
President, Academy Capital Corp.,
(416) 625-1015, (416) 322-5607 (fax), yaltman@sympatico.ca |
