Casinos Real Money News

The Tilman Fertita-owned Golden Nugget Online Gaming has recently announced a reverse merger with Landcadia Holdings II Inc. which is a special-purpose acquisition company. This is a very strategic move for the seven-year-old iGaming business especially considering that it will be only the second pure publicly-traded iGaming company in the United States.

Golden Nugget already has a great reputation in the gaming industry which means there is a lot of optimism regarding its future as a Nasdaq-listed company. During the press release where the special-purpose merger was announced, Fertitta pointed out that the gaming brand is one of the most recognizable ones in the industry. This can be mostly be attributed to the great management that the company has been under since its launch a few years back.

The Roadmap

The merger is expected to be complete before the fourth quarter of the year 2020 rolls around and once it does a slew of other changes will follow. To begin with, Landcadia Holdings II Inc. will be rebranded as Golden Nugget Online Gaming Inc. – the same will go for its Nasdaq trading symbol which will now be “GNOG”.

Landcadia Holdings will also be assuming about $150 million of the Golden Nugget Online Gaming Inc.’s debt. It will also be paying down $150 million more of the gaming company’s debt. In addition to that, it will also be assuming responsibility by paying all the prepayment fees, expenses, and even the transaction fees.

No Leadership Changes

As per the figures released during the press release, the merger values GNOC at about $745 million, and Tillman Fertitta will be retaining 52 percent ownership of the company – he will also have controlling interest over the business. As such, it is not too surprising that he will also be assuming the roles of GNOC’s chairman and CEO.

Thomas Winter who has had a lot to do with the development of the company’s iGaming business over the past several years will also be retaining his position as the GNOC president. He has always had the support of Fertitta and things will be no different once the merger is complete.

“Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business.”

TILMAN J. FERTITTA, GNOG’S CHAIRMAN, AND CEO.

While there is a lot of optimism regarding the success of the venture, there are still a few things that will need to be gotten out of the way first. For instance, while the transaction has already been unanimously approved by the Board of Directors of Landcadia II, it still has to get the approval of a majority of the outstanding shares of Landcadia II, excluding shares beneficially owned by Tilman J. Fertitta and Jefferies Financial Group. In addition to that, it will be subject to certain regulatory approvals.