Global Entertainment is considering listing its all-inclusive resort operations in the United States via a merger with a Special Purpose Acquisition Company (SPAC).
Global Entertainment’s operations have been consistently expanding since the launch of Okada Manila in the Philippines in December 2016.
Although the resort was compelled to shut down from March to September 2020 due to the COVID-19 outbreak, Global Entertainment stated it has taken various steps to boost profitability.
These initiatives include reducing fixed expenditures and enhancing marketing endeavors. These initiatives will continue to be implemented to improve future profitability after the relaxation of ongoing restrictions, such as the 30% capacity limit.
Consequently, Global Entertainment is currently exploring a potential listing on the Nasdaq or the New York Stock Exchange, aiming to further develop its all-inclusive resort operations and enhance the value of the enterprise group.
To support these plans, Global Entertainment has entered into agreements with financial advisory firms in the United States and Japan to prepare for a potential listing.
In this endeavor, the operator is seeking a SPAC to facilitate their public debut. They are meticulously examining the legal and fiscal ramifications, along with the potential need to modify their capital framework in light of this transition.
Global indicated that this event is likely to occur within the current year, but refrained from disclosing a specific timeframe for the announcement of a merger and listing schedule.
This move would mark the latest instance of a gaming enterprise entering the public market through a SPAC arrangement, following in the footsteps of entities such as DraftKings, Golden Nugget Online Gaming, and Rush Street Interactive.
Fertitta Entertainment, the parent entity of Landry’s, the physical operator of Golden Nugget, is also pursuing a public listing via a merger with Fast Acquisition Corporation.
The company also unveiled its financial performance for the preceding year. While revenue generated from its pinball machine sales division saw an uptick, the closure of Okada Manila resulted in a 27.3% year-over-year decline in overall revenue.
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