Gaming & Hospitality Acquisition Corp Plans Mergers in Gaming Industry

Gaming & Hospitality Acquisition Corp Plans Mergers in Gaming Industry

Gaming & Hospitality Acquisition Corp recently notified the Securities and Exchange Commission (SEC) about its plans to merge with two companies, including Affinity Gaming.

SPACs are trending in the gaming sector

Special Purpose Acquisition Companies (SPACs) are becoming all the rage in the gaming industry. A recent filing with the SEC suggests that Gaming & Hospitality Acquisition Corp is looking for a merger with an established firm in the industry. The blank check company aims to identify, acquire and develop a business in this industry, depending on the experience of this management team. For this purpose, it intends to raise $150 million via an initial public offering (IPO).

Gaming & Hospitality Acquisition Corp Plans Mergers in Gaming Industry

Affinity Gaming, which is the parent company of Silver Sevens would merge with the SPAC and one more company. It currently runs casinos in Las Vegas and has several gaming properties in Missouri, Iowa, and Nevada.

What is the SPAC planning?

The SPAC said that no serious discussions have started yet but it has outlined the potential targets in the gaming and hospitality sector. The firm noted,

“We seek to acquire one or more businesses with assets that are fundamentally sound yet are underperforming their potential.”

The firm is also eyeing real estate investment trust (REIT)-owned properties, online gambling and sports betting operators, gaming platforms, and suppliers of technology and technology suppliers of the gaming sector.

The company will be managed by James Zenni, the Z Capital president and CEO along with Mary Beth Higgins, the CEO of Affinity Gaming. Both executives come with significant experience and expertise in the gaming industry. Affinity Gaming has agreed to buy units worth $6.7 million in the IPO. The firm will start trading on NASDAQ under the GHACU ticker.

The gaming profile has witnessed high profile gaming acquisitions in the past year, including that of Golden Nugget Online Gaming and DraftKings. SPACs provide firms an easy way to list on traditional stock markets.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.