Hollywoodbets in deal to help Kenilworth Racing tackle severe liquidity issues

Hollywoodbets will acquire all of the Thoroughbred Horseracing Trust’s shares in South Africa’s Kenilworth Racing (KR) amid plans to offset “severe liquidity constraints

Hollywoodbets will acquire all of the Thoroughbred Horseracing Trust’s shares inwards South Africa’s Kenilworth Racing (KR) amid plans to countervail “severe liquidity constraints.”

In a lengthy statement to stakeholders, the Trust and KR proposed sure transactions that testament get “a significant wallop on the time to come of racing inwards the Western Cape.”

Currently, KR is facing a dire financial state of affairs and, absent immediate action, may live forced to “imminently cease all operations.” To avert this outcome, the Trust and KR hold sought-after(a) immediate and sustainable sources of liquidity.

To this end, the gameboard of KR has sanctioned and counter-signed an face of involvement (EOI) with GMB Investments, a accompany represented past Cape Town-based race horse owner St. Gregory of Nazianzen Bortz.

Once approvals are received and sure conditions fulfilled, GMB testament bring home the bacon an straightaway R130m ($8m) to KR, of which R50m testament follow granted in the word form of a working uppercase facility.

In increase to the “normal and customary terms typical of such financial arrangements,” GMB will invite an alternative from KR to subscribe for an equity stake.

Furthermore, a memorandum of discernment (MOU) has been signed with Hollywoodbets for the purchase of all KR shares and claims owned by the Trust. In return, Hollywoodbets testament drive home a R200m immediate payment injection upon the successful closure of the transaction.

“Hollywoodbets has already shown its consignment to horseracing inward South Africa through and through its extended race horse ownership and sponsorship, and remains steadfastly focused on continuing to encourage and throw back up to the sportsman it is so passionate about,” said KR.

“Hollywoodbets’ involvement testament ensure that thousands of jobs inward and around the horseracing manufacture are maintained and secured.”

Once both deals are completed, thither will be deuce shareholders inwards KR, that is to say Hollywoodbets and GMB. It is hoped-for that Bortz will dish up as Executive Chairman of KR.

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