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- What Is The Current Status Of The Company?
- Why Is It Taking So Long To Build The
Track?
- Is This Track Ever Going To Be Built?
- What Is The Status Of The HRA / AGLC License?
- What Does The Project Look Like Now?
- What Is UHA's Plan Going Forward?
- How Can We Help?
- Can I Read A Copy Of The Share Subscription
Agreement?
- Will New Shareholders Have The Same Rights
As Existing Shareholders?
- What Is The Projected Rate Of Return
On This Investment?
- What Is The Value Of The New Shares?
- What Land Is For Sale?
- What Is The Zoning Of The New Land For
Sale?
- By Selling All The Excess Land Aren't
You Forfeiting Your Future?
- What About The Quality Of Phase 1 Of
The REC?
- What Are Your Costs Going Forward?
- Isn't The Racing Industry Better Off
Without UHA?
- Are You Looking For Partners?
- Who Do I Contact For More Information?
1)
What Is The Current Status Of The Company?
Some great news. We have now successfully exited out of court protection (CCAA)!! We were in court, August 23, 2010, for the last time and the judge signed the order to terminate the stay. Since September 15th, 2009, when UHA first petitioned the court for creditor protection under the Companies Creditor Arrangement Act (CCAA), we have worked out arrangements with all of our creditors. We now emerge from under creditor protection a much healthier, cleaner, leaner and organized company – ready to get on with the business of building the racetrack and Racing Entertainment Centre. Financially we are in the best position that we have been in at any time in the past 3 years.
2)
Why Is It Taking So Long To Build The Track?
The last few years have been extremely trying. With the sub prime mortgage problem and the world wide economic downturn getting financing and selling land has been extremely difficult. At one point in 2007 we did have a term sheet from a major European bank subject to getting water. The 18 month delay in getting water to the site led to us losing this financing and our momentum. Now that we have fixed up our own internal financial situation we do see the credit markets loosening up and are confident that we will arrange financing soon. No doubt we made some mistakes in judgment, too, which we have taken responsibility for, have learned from and have put measures in place to ensure they do not happen again.
3)
Is This Track Ever Going To Be Built?
To be honest that now depends on the horse racing community. We need help. We need new equity injected into the project to entice a financial institution to lend us the money we need to finish. That is why raising equity is our number one priority. Over the past few months several financial institutions have told us that if we get sufficient new equity then financing will follow. As mentioned above we have recently made agreements with our creditors that have significantly reduced our debt and cleaned up our balance sheet. Our chances of success have never been better.
4)
What Is The Status Of The HRA / AGLC License?
UHA has a 10 year license to race from Horse Racing Alberta (HRA). We are currently in stage 4 of 5 with Alberta Gaming & Liquor Control (AGLC). Stage 4 is a review of the projects financing while stage 5 is the actual granting of the license. Currently AGLC has a moratorium for the granting of new licenses. UHA is grandfathered. We continue to have good relations with both HRA and AGLC who both remain very supportive. In fact having a grandfathered AGLC license in an era of moratoriums combined with our unsurpassed location remains our greatest asset.
5)
What Does The Project Look Like Now?
Over the past 18 months UHA has scaled down the project to better fit into today’s economic realities. We are now taking a phased approach. The first phase will see a single storey Racing Entertainment Centre (REC) built, along with a 1 mile race track and 6 barns. The main revenue sources (625 slot machines, simulcast betting and restaurant / bar) have been retained in the REC. The barns will hold 890 stalls. Phase II will see the expansion of the REC as funds become available in the future. UHA is much more grounded today. Our goals, our plans and our projections are more realistic and based on common sense.
New
REC East View
New
REC West View
Entire
Project Looking East
6)
What Is UHA's Plan Going Forward?
We do have a plan that we are working toward. It is made up
of 3 different parts;
a) Raise New
Equity: We are planning to raise $35 million in new share
sales.
b) b) Sell Excess Lands: UHA currently owns 112 acres of which 75 acres is excess lands to sell. These are lands that are not required for the race track operation. We have retained Rob McElhoes of Colliers to market the land on our behalf. For more information please contact Rob at 403-298-0403.
c) c) Subdivide Our Existing Lands: Currently UHA owns 2 large parcels of lands. We are going to subdivide these lands into smaller parcels. Smaller parcels will allow us to get financing easier and allow us more flexibility in selling our land.
7)
How Can We Help?
If you want to help you can buy shares in UHA Inc. We have made arrangements with our law firm of Miller Thomson to take your equity cheque in Trust. In that way you can ensure your money is safe. Once you are confident that we are moving in the right direction you can release your cheque to us. Please note that we are not inviting the public at large to invest: this is a closed listing available to accredited investors only with a minimum subscription of $150,000.
8)
Can I Read A Copy Of The Share Subscription Agreement?
Please
click here to read a copy of the ‘UHA Share Subscription Agreement’. Again please note that this is reserved for accredited investors.
9)
Will New Shareholders Have The Same Rights As Existing Shareholders?
New investors will have exactly the same rights and standing as the existing shareholders. Everybody will be Class ‘A’ shareholders. Nobody will have greater standing than anyone else.
10)
What Is The Projected Rate Of Return On This Investment?
With the revenue coming in from land sales, the 625 slot machines, simulcast betting, racing, food and beverage we are projecting a return to the investors of 12% to 14%. It really is a good investment once we get past the current hurdles and can get the project built. For those of you who are accredited investors and would like more information about the new business plan please contact our President – Darcy Marler at
darcym@uha.ca
for a copy.
11)
What Is The Value Of The New Shares?
We will be putting 35,000 shares into the market at $1,000 per share for a total of $35,000,000. This is the same value that the existing shareholders paid. Nobody will be favoured or get any deals. Again you can have this money put in trust to make sure that your investment is safe. There will be a $150,000 minimum and you must be an accredited investor
12)
What Land Is For Sale?
We need between 100 and 120 acres of land for the REC, parking lot, race track and barns. This land is in the centre of our property. The excess land for sale is located to the east and to the south of our barns. The mall is averaging 30,000 people per day. We really do believe that the Cross Iron area will be a humungous success! With the racetrack, slot floor, simulcast racing, the mall and it’s proximity to the airport we see the Cross Iron area being a true destination and THE new conference site for Calgary in the future. There will be so much to see and do.
13)
What Is The Zoning For The New Land For Sale?
We are zoned as DC109. This is a more retail / commercial mix than any of the neighbouring lands that surround us. Click
here for details of what types of businesses can fit into
this zoning.
14)
By Selling All The Excess Land Aren't You Forfeiting Your
Future?
Phase 1 of the REC will be built on the foundation that currently exists on site. It is 50,000 square feet. As we grow in the future we will be able to expand up and out without difficulty. We have also left room to the north and south of the existing barns for more barns and future expansion.
15)
What About The Quality Of Phase 1 Of The REC?
Even though we have scaled down the project we will not be sacrificing quality. The barns are 95 % built and there has definitely been no reduction in quality. The track will also be properly engineered to ensure a quality ride with proper drainage. As mentioned before the 3 main sources of revenue have been incorporated into the first floor of the REC. We have also built in enough strength into the foundation to allow for a future grandstand / tiered dining room.
16)
What Are Your Costs Going Forward?
Going forward we will need $35 million to complete the REC, parking lot, race track, barns landscaping and onsite infrastructure. We will also require an additional $30m for land purchases. To pay for this we plan to raise $35 million in new equity and gain $30 million in debt financing.
17)
Isn't The Racing Industry Better Off Without UHA?
Definitely not! If UHA is not successful we are positive that this is the last chance for horse racing in Southern Alberta for a long time to come. The previous HRA license holder has made it clear that they are no longer interested in racing again. They have moved on. In addition there are already 4 casinos in their immediate area so where would the REC go? If UHA were to lose the HRA / AGLC license then the tendering process would start all over again and it would take years for somebody else to gain the license and build a track. Moreover, with the AGLC moratorium any new license holder would be unable to get an REC license. We feel that UHA is the only option left to the racing industry here in Alberta. Let’s all work together to build a track in East Balzac that we can all be proud of.
18)
Are You Looking For Partners?
We are certainly open to any realistic joint venture partnership group coming forward. A possible scenario would be for a group in the casino / racing industry to come forward to buy into the REC, race track and barn lands. Then this group could finish the construction of the project. UHA would remain a partner of the gaming and racing program revenue and continue to handle the excess land sale portion of the project. We are currently considering a number of such proposals.
19)
Who Do I Contact For More Information?
Please feel free to contact the President of UHA, Darcy Marler at 403-615-1316 or darcym@uha.ca
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