FX Real Estate and Entertainment Inc. Chairman Robert F.X. Sillerman Exercises Rights in Pending Rights Offering and Purchases 3
12 Mars 2008 - 4:34PM
PR Newswire (US)
NEW YORK, March 12 /PRNewswire-FirstCall/ -- FX Real Estate and
Entertainment Inc. (NASDAQ:FXRE), announced today that Robert F.X.
Sillerman, the Company's Chairman and Chief Executive Officer, has
exercised all of the rights he received in the Company's pending
rights offering, resulting in his purchase of 3,037,265 shares at a
price of $10 per share. Mr. Sillerman had agreed to subscribe for
these shares under the terms of his previously announced investment
agreement with FXRE. As previously announced, FXRE stockholders of
record on March 6, 2008 are receiving the right to purchase one
share of FXRE common stock at a price of $10 per share for every
two shares of common stock held on this date. As part of the
initial transaction that created FXRE in June 2007, holders of
approximately 50% of FXRE's outstanding common stock, representing
approximately 20 million shares, waived the right to participate in
the rights offering. As a result, approximately 9.9 million shares
will be offered in the rights offering, representing gross proceeds
of approximately $99 million. In addition to purchasing the
aforementioned shares, Mr. Sillerman and The Huff Alternative Fund,
L.P. have entered into investment agreements with FXRE pursuant to
which they have agreed to purchase shares in the rights offering
that are not otherwise subscribed for by stockholders, if any, at
the same $10 per share offering price. For more information about
these investment agreements with Mr. Sillerman and Huff, please see
the Company's Form 8-K filed with the Securities and Exchange
Commission on January 10, 2008, which can be viewed at the SEC's
website at http://www.sec.gov/. A registration statement for the
rights and the shares of FXRE common stock underlying the rights
has been filed with and declared effective by the Securities and
Exchange Commission ("SEC"). A copy of the final prospectus from
the registration statement and additional material relating to the
rights offering were mailed on or about March 11, 2008, to
stockholders of record as of March 6, 2008. Stockholders will also
be able to obtain a copy of the prospectus and the other materials
by contacting Mellon Investor Services, the information agent for
the rights offering, at (877) 243-3815 for domestic callers and
(201) 680-6579 for foreign callers. FXRE's common stock is listed
and traded on the NASDAQ Global Market under the symbol "FXRE." The
rights, which are transferable, are listed for trading on The
NASDAQ Global Market under the symbol "FXRER." This press release
is not an offer to sell nor a solicitation of any offer to buy any
securities in any state or jurisdiction, nor shall there by an sale
of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any
jurisdiction. These securities may not be offered or sold in the
United States absent registration under or any exemption from the
registration requirements of the Securities Act of 1933, as
amended. About FX Real Estate and Entertainment FX Real Estate and
Entertainment owns 17.72 contiguous acres of land located at the
southeast corner of Las Vegas Boulevard and Harmon Avenue in Las
Vegas, Nevada, known as the Park Central site. FXRE intends to
pursue a hotel, casino, entertainment, retail, commercial and
residential development project on the Park Central site. FXRE has
license agreements with Elvis Presley Enterprises, Inc., an
85%-owned subsidiary of CKX, Inc. (NASDAQ:CKXE), and Muhammad Ali
Enterprises LLC, an 80%-owned subsidiary of CKX, which allows it to
use the intellectual property and certain other assets associated
with Elvis Presley and Muhammad Ali in the development of its real
estate and other entertainment attraction-based projects. FXRE
currently anticipates that the development of the Park Central site
will involve multiple elements that incorporate the Elvis Presley
assets and theming. In addition, the license agreement with Elvis
Presley Enterprises grants FXRE the right to develop, and it
currently intends to pursue the development of, one or more hotels
as part of the master plan of Elvis Presley Enterprises, Inc. to
redevelop the Graceland property and surrounding areas in Memphis,
Tennessee. In addition to its interest in the Park Central
Property, its plans with respect to a Graceland-based hotel, and
its intention to pursue additional real estate and
entertainment-based developments using the Elvis Presley and
Muhammad Ali intellectual property, FXRE, through direct and
indirect wholly owned subsidiaries, owns 1,410,363 shares of common
stock of Riviera Holdings Corporation (AMEX:RIV), a company that
owns and operates the Riviera Hotel & Casino in Las Vegas,
Nevada and the Blackhawk Casino in Blackhawk, Colorado. DATASOURCE:
FX Real Estate and Entertainment Inc. CONTACT: Sean Cassidy,
+1-212-981-5233, or Ed Tagliaferri, +1-212-981-5182, both for FX
Real Estate and Entertainment Inc.
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