Las Vegas-based Affinity Gaming is looking to make an acquisition.
The merger would be through Gaming & Hospitality Acquisition Corp. Done, a blank check company that plans to raise between $ 150 million and $ 172.5 million through an IPO.
“Our… strategy will be to identify, acquire and build a company in the gaming and hospitality sector that complements the experience of our management team,” read a report filed with the US Securities and Exchange Commission on Friday.
Merger through a SPAC
Gaming & Hospitality Acquisition, which signed up for an IPO on Friday, plans to merge with its sponsor Affinity Gaming Holdings LLC and at least one other company.
Affinity Gaming, owned by Z Capital, is the parent company of Silver Sevens Casino in Las Vegas and seven other properties in Nevada, Iowa, and Missouri, according to its website.
Blank check companies like Gaming & Hospitality Acquisition have no commercial activities. These companies – also known as Special Purpose Acquisition Companies or SPACs – are founded solely to raise money through an IPO and to merge with existing operating companies.
This type of merger allows private operators a quick passage through the IPO process and offers the SPAC founders a stake in the newly acquired business.
Gaming & Hospitality Acquisition hasn’t started any serious discussions, but according to SEC filings, it is aimed at gaming and hospitality companies.
“We aim to acquire one or more companies with assets that are solid from the ground up but are not realizing their potential,” the file says. “We will seek ways in which we can use our significant experience and expertise to help one or more companies achieve long-term strategic and operational excellence.”
Target companies can be gaming properties or companies, real estate mutual fund properties, distributed gaming platforms, online gaming or sports betting companies, or gaming technology companies.
The SPAC management team consists of James Zenni, President and CEO of Z Capital, and Mary Beth Higgins, CEO of Affinity Gaming.
Affinity Gaming has agreed to purchase more than $ 6.7 million worth of units. Additional units are to be listed on the Nasdaq market under the symbol GHACU.
Big companies like Virgin Galactic and Draftkings have gone public through SPACs for the past two years. Vegas Golden Knights owner Bill Foley also has a number of blank check companies, one of which last month announced plans to merge with an online payment processing company tied to well-known casino companies.
Contact Bailey Schulz at [email protected] Follow @bailey_schulz on Twitter.