NEW YORK, May 4, 2012 — Elray Resources Inc. (ticker ELRA.OB) announced today that it has entered into an agreement to acquire all of the outstanding shares of Golden Match, a company incorporated in the British Virgin Islands, following a letter of intent which was signed on March 22, 2012.
Golden Match is an investment holding company. Its principal business activity is to hold a profit share agreement with a VIP Room Gaming Promoter, under which it receives 80% of the profit stream from the Promoters. The Promoter currently participates in the promotion of many, major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world.
VIP gaming operations in Macau consist of VIP rooms that cater exclusively to high-limit Baccarat table games. Baccarat is the largest source of gaming revenue in Macau, Gaming Promoters in Macau have historically maintained the majority of VIP customer relationships. The Promoters secure VIP rooms through agreements in which they receive either a commission on turnover or a percentage of the casino net gaming win or loss on a pre-gaming tax basis.
About Golden Match:
Golden Match is a company that has negotiated a profit sharing agreement with CALI Promocao de Jogos Sociedade Unipessoal Lda. (CALI), a company duly incorporated under the laws of the Special Administrative Region of Macau.
CALI promotes Casinos in Macau SAR, pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macau (DICJ).
With immediate effect Mr. Lao Sio I. is appointed Chairman of the Board of Directors with Brian Goodman remaining as Chief Executive.
Upon signing the agreement, Mr. Lao Sio I. commented “I am excited to be part of this new venture which will enable us to take advantage of exciting growth opportunities specifically in Asia and the benefits provided by Elray will enable me to exponentially grow the gaming business. Macau has become the Gambling Capital of the World and continues to grow at a rapid rate, new casinos are opening, existing ones are expanding with more and more people visiting Macau, we will now be able to pursue these opportunities.”
Brian Goodman, current CEO stated that “Elray will now be well positioned to develop and grow as a gaming entity internationally. The Macau opportunity together with the US listing will enable the company to raise growth capital, acquire other gaming promoters in Macau as well as in other jurisdictions and create a profitable company, creating enormous institutional worth whilst aggressively increasing the brand value on a global scale returning excellent returns for shareholders, overall an excellent result for Elray shareholders.” Read the rest of this entry »