Full House Resorts Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Full House Resorts (Nasdaq: FLL) announced a planned underwritten public offering of its common stock, subject to market conditions. The company may grant underwriters a 30-day option to purchase an additional 15% of shares. Proceeds will be used for development, working capital, and corporate purposes, potentially strengthening its application for a casino license in Waukegan, Illinois, and funding construction at its Silver Slipper Casino. The registration statement for this offering was previously filed with the SEC.

Positive

• Intended use of proceeds includes strengthening application for the proposed American Place casino in Waukegan, Illinois.
• Funding for construction of a new hotel tower at Silver Slipper Casino.

Negative

• Proposed offering could lead to shareholder dilution.
• No certainty regarding timing or regulatory approval for construction projects.

LAS VEGAS, March 24, 2021 (GLOBE NEWSWIRE) -- Full House Resorts, Inc. (Nasdaq: FLL) (“Full House Resorts” or the “Company”), a developer, owner and operator of casinos and related hospitality and entertainment facilities in regional U.S. markets, today announced that it intends to offer and sell shares of its common stock in an underwritten public offering. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Full House Resorts also intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock sold in the offering to cover over-allotments, if any. All of the securities in the proposed offering are to be sold by Full House Resorts.

The Company intends to use the net proceeds from the proposed offering, if completed, for development, working capital and general corporate purposes. Management believes that the improvement to the Company’s balance sheet with the net proceeds from this proposed offering will significantly strengthen its application for the proposed American Place casino in Waukegan, Illinois. The Illinois Gaming Board has received three applications for such license, each endorsed by the City of Waukegan. The use of proceeds could also include construction of a new hotel tower and other amenities at the Company’s Silver Slipper Casino and Hotel. Certain regulatory approvals and entitlements are still required to enable such construction and there is no certainty as to the timing or receipt of such approvals.

Craig-Hallum Capital Group is acting as the sole book-running manager for the offering.

A shelf registration statement on Form S-3 (File No. 333-251778) relating to the proposed offering of the shares of common stock described above was filed with the Securities and Exchange Commission (the “SEC”) on December 29, 2020 and declared effective by the SEC on January 7, 2021. The shares may be offered only by means of a written prospectus and prospectus supplement that form part of that registration statement. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the proposed offering have been filed with the SEC and may be obtained on the SEC’s web site at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the proposed offering may also be obtained by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, Attn: Equity Capital Markets, by telephone at (612) 334-6300 or by e-mail at prospectus@chlm.com. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. The Company is currently constructing Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado, and is one of three finalists for consideration by the Illinois Gaming Board to develop a casino in Waukegan, Illinois. For further information, please visit www.fullhouseresorts.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This document may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding, but not limited to, Full House Resorts’ intention to the offer the securities and the expected uses of the proceeds from the proposed offering. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements involve risks and uncertainties that could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Full House Resorts’ operations, markets, products and services. Full House Resorts identifies the principal risks and uncertainties that impact its performance in its public reports filed with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition” sections of Full House Resorts’ most recent Annual Report on Form 10-K, as may be supplemented or amended by Full House Resorts’ subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and Full House Resorts undertakes no obligation to publicly release the results of any revision to such forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by applicable law.

FAQ

What is the purpose of Full House Resorts' public offering?

Full House Resorts intends to use the proceeds for development, working capital, and general corporate purposes.

What is the size of the proposed offering by Full House Resorts?

The exact size of the offering is subject to market conditions and is not specified in the press release.

What are the potential impacts of the public offering on Full House Resorts shareholders?

Shareholders may face dilution as a result of the new shares being offered.

When was the registration statement for Full House Resorts' offering filed?

The registration statement was filed with the SEC on December 29, 2020.

What is the status of Full House Resorts' casino application in Waukegan, Illinois?

Full House Resorts is one of three applicants for a casino license endorsed by the City of Waukegan.