NOVC joined Esplanade Capital in forcing Nevada Gold to accept two new directors. One of these new directors, Shawn Kravetz, owner of Boston-based Esplanade Capital, has tried unsuccessfully to buy another gaming company called Archon for years. His last $120M offer was rebuffed by Archon that owns, among other things, one of the more valuable undeveloped parcels on the Las Vegas strip. (Archon once collected a $67M earnest money deposit when a buyer defaulted on the purchase of that land). NOVCQ director Robert Pearse was once part of an unsuccessful nominating slate with Kravetz in a takeover attempt of a $100M company in the energy sector. Eberwein and Rudolph Kluiber (managing director of Boston-based GRT Capital), the other new director at Nevada Gold, appear to have invested in various other energy companies together.
Since NOVCQ is currently focused on its Chapter 11 and its reorganization plan, why did it buy some token shares in a casino company and why is Nevada Gold reaching and signing agreements with puny shareholder NOVCQ and its CEO, and paying NOVCQ’s legal fees associated with this agreement?
Nevada Gold is a profitable company that earned a total of $5M, before taxes, the last two years, with $3M to bottom line and $2M to taxes. Could this be the first of possible profitable acquisitions that can be used to offset NOVCQ NOL’s?
Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) of Las Vegas, Nevada is a developer, owner and operator of 9 gaming operations in Washington ( wagoldcasinos.com ), a local casino in Henderson, Nevada (clubfortune.com), and a slot route operation in Deadwood, South Dakota ( dakotaplayersclub.com ).