| Colonial Downs Holdings, Inc. | |||
| Ticker: | CDWN | 3610 N. Courthouse Road | |
| Exchange: | NASDAQ-Small Cap Market | Providence Forge, VA 23140 | |
| Industry: | Service (SIC Code 7948) | (804) 966-7223 | |
| Type of Shares: | Class A Common Shares | Filing Date: | 12/19/96 | |
| U.S. Shares: | 4,250,000 | Offer Date: | 3/17/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 4,250,000 | Offer Price: | $9.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.67 | |
| Offering Amount: | $42,500,000 | Selling: | $0.40 | |
| Expenses: | $625,000 | Reallowance: | $0.10 | |
| Shares Out After: | 7,250,000 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9571 |
| Issuer's Law Firm: | Hogan & Hartson |
| Bank's Law Firm: | Dickstein, Shapiro & Morin |
| Auditor: | BDO Seidman |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 12/31/96 | ||||
| Revenue: | $8.53 | Assets: | $12.18 | ||
| Net Income: | -$0.65 | Curr Assets: | |||
| EPS: | -$0.22 | Liabilities: | $11.18 | ||
| Prior EPS: | -$0.11 | Curr Liabilities: | |||
| Cash Flow/Oper: | $0.33 | Equity: | $1.00 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company in involved in operating horse racing and wagering in Virginia. The company is currently building a racetrack in New Kent County, VA, where it plans to offer thoroughbred and standardbred, or harness, horse racing. The company also intends to conduct pari-mutuel wagering at the Track and at its SWFs on races run at the Track and on races telecast from out-of-state tracks. After it begins live racing at the Track, the company will seek to increase its revenues by entering into agreements to simulcast races run at the Track to out-of-state racetracks, SWFs, casinos and other gaming facilities. The Track is scheduled to open and begin live racing prior to July 1, 1997. The Track's initial racing season is expected to consist of 30 days of thoroughbred racing and 50 days of harness racing. The company's goal is to establish the Track as on of the premier venues for thoroughbred horse racing in the East by attracting high quality horses and offering an appealing environment for racing participants and customers. |
| Competition |
| The company is subject to competition from racetracks located outside Virginia (including several in Delaware, Maryland, New Jersey, New York, Pennsylvania, and West Virginia) and other forms of gaming, such as land-based casinos, including those in Atlantic City, and statewide lotteries in Virginia and in neighboring states. The company will also face competition from a wide range of entertainment options, including live and televised sporting events and other recreational activities. The possible legalization of other forms of gaming in Virginia, such as riverboat casino gaming, also could have an adverse effect on the company's business. Although bills for the creation of riverboat gaming have failed in the Virginia legislature, proponents of riverboat gaming in Virginia may continue to seek legislative approval. It is not possible, at this time, to determine if or when additional forms of gaming will be permitted in Virginia or neighboring states and, if so, the impact, if any, on the company. If additional gaming opportunities become available in or around Virginia and the company is unable to participate in such gaming opportunities, it could have a material adverse effect on the company and its operations. The company competes and will compete for wagering dollars and simulcast fees with live racing and races simulcast from horse racetracks in other states, particularly racetracks in neighboring states such as Charles Town in West Virginia, Pimlico Race Course, Laurel Park and Rosecroft Raceway in Maryland, and Delaware Park in Delaware. In addition, patrons may be attracted to thoroughbred races in Maryland during the company's harness racing meet. The company believes that the Management and Consulting Agreement will promote coordination of thoroughbred events between the two states. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to complete construction and commerce operation of the Track; to acquire, construct, renovate and/or equip SWFs; to repay interim financing provided by certain shareholders; and other general corporate purposes. |