Gamehost Announces Revised Dividend Policy and Declared Dividends for May 2016 and June 2016
RED DEER, ALBERTA--(Marketwired - May 11, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Gamehost Inc.'s (TSX:GH) ("Gamehost" or the "Corporation") board of directors (the "Board") reviews its dividend policy each quarter to determine its continued appropriateness in light of changing circumstances. In conducting its review, the Board gives consideration to both the broader macro environment and the Corporation's opportunities for capital deployment.
The Corporation's Boomtown casino in Fort McMurray remains closed until further notice. Currently we are not aware of any direct fire or other damage to the building. At this time we cannot, with any certainty, project a reopening date or when we might return to full operations. The Boomtown Casino is fully insured with property and business interruption coverage for a period of 18 months. Management has initiated an insurance claim in anticipation of losses at the Boomtown Casino and is currently in discussions with the insurer regarding due process.
The Corporation's remaining assets continue to perform exceptionally well in a tough macro environment. The Alberta economy remains under immense pressure due to a precipitous drop in oil & gas pricing and activity. We are hopeful that we are seeing signs of stabilization; however, we lack visibility on the timing or magnitude of an eventual recovery.
After thoughtful consideration, the Corporation's Board of Directors have determined that a reduction in the Corporation's monthly dividend is prudent. Going forward, the Corporation expects to maintain a more conservative payout ratio in order to preserve the strength of its balance sheet and provide additional financial flexibility to pursue accretive growth. In addition, a reduced dividend will allow the Corporation to act on its Normal Course Issuer Bid, if and when, the Corporation's share price does not reflect their underlying value.
The Board recognizes the importance of dividend stability to the Corporation's shareholders and believes a reduced monthly dividend to be both appropriate and sustainable. Accordingly, the Board have declared a regular cash dividend for the month of May 2016 at the historical rate of $0.0733 (CDN$) per common share. The May dividend will be paid on June 15, 2016 to shareholders of record on May 31, 2016. The ex-dividend date is May 27, 2016. The Board has further declared a regular cash dividend for the month of June 2016 at a going forward rate of $0.0575 (CDN$) per common share. The June dividend will be paid on July 15, 2016 to shareholders of record on June 30, 2016. The ex-dividend date for the June dividend is June 28, 2016. The new regular monthly dividend rate equates to an annualized dividend of $0.6900 (CDN$) per common share or a 21.6% reduction to the former rate of $0.8796 (CDN$) per common share.
These declared dividends are considered "Eligible Dividends" and therefore, qualify for the enhanced gross-up and dividend tax credit available to Canadian shareholders.
This press release may contain certain "forward-looking information" or statements within the meaning of applicable securities legislation and may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans", "withstand", "further" or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Corporation's current expectations, estimates, projections and assumptions that were made by the Corporation in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Corporation's dividend. Forward-looking statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.
Gamehost is corporation established under the laws of the Province of Alberta. Gamehost's operations are all located in the Province of Alberta, Canada. Gamehost's operations include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located in Grande Prairie. Gamehost has a 91% ownership interest in Deerfoot Inn & Casino Inc. in Calgary.
Gamehost's common shares trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, visit www.gamehost.ca. Complete disclosure of the Corporation can be found on SEDAR at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Craig Thomas, Chief Financial Officer, or
Darcy J. Will, Vice President
(403) 346-4545 or Toll Free: (877) 703-4545
(403) 340-0683 (FAX)