HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. ("AERL" or the "Company") (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that it has received an additional HK$100 million interest-free line of credit for its VIP room at the Star World Hotel & Casino in downtown Macau, bringing its total line of credit at the Star World to HK$200 million.
Overall, the Company now has total lines of credit for its VIP rooms of HK$430 million - HK$200 million each at the Star World and Galaxy Macau Resort, and HK$30 million at the Venetian Macao-Resort-Hotel. All lines of credit are interest-free, non-dilutive and guaranteed by the Company's founders, Mr. Lam and Mr. Vong.
"Receiving an additional HK$100 million line of credit is further evidence of our success in increasing Rolling Chip Turnover at our VIP rooms and ultimately in generating additional net income for AERL and our partners as well as increasing equity value for our shareholders," said AERL Chairman Lam. "With the ability to now tap up to HK$430 million in lines of credit, we expect to be able to grow our presence even more quickly in Macau."
With the increase in cage capital from the new line of credit, the Company is reiterating its Rolling Chip Turnover 2011 guidance for its three existing VIP rooms of $1.7 billion per month and now expects to be at the higher end of its 2011 non-GAAP income guidance of $70 million to $77 million.
About Asia Entertainment & Resources Ltd.
AERL, formerly known as CS China Acquisition Corp., acquired Asia Gaming & Resort Limited ("AGRL") on February 2, 2010. AERL is an investment holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, and is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL's VIP room gaming promoters currently participate in the promotion of three major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One VIP gaming room is located at the top-tier 5-star hotel, the Star World Hotel & Casino in downtown Macau, and another is located in the luxury 5-star hotel, the Galaxy MacauTM Resort in Cotai, each of which is operated by Galaxy Casino, S.A. The third VIP gaming room is located at the Venetian Macao-Resort-Hotel in Cotai.
Forward Looking Statements
This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of AERL's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements.
Contacts
Asia Entertainment & Resources Ltd.
James Preissler, 646-450-8808
preissj@aerlf.com
or
ICR
William Schmitt, 203-682-8294
william.schmitt@icrinc.com