Landcadia amends purchase agreement in GNOG merger

A new purchase agreement will allow the merger to be approved despite low shareholder attendance.
A new purchase agreement will allow the merger to be approved despite low shareholder attendance.

The Landcadia and Golden Nugget merger will go to a vote again on December 29 with the new amendment in place.

US.- Landcadia has announced that it has amended the purchase agreement relating to its merger with Golden Nugget Online Gaming (GNOG).

The new amendment was made after Landcadia failed to obtain enough shareholder votes in favour of the merger in a virtual meeting last week.

While around 99.8 per cent of those attending the meeting voted in favour, they represented just 40.5 per cent of total shareholders as many did not attend. Landcadia’s policy required that at least 50 per cent of all outstanding shares to vote in favour.

The purchase agreement has now been amended to allow the merger to be approved with more than 50 per cent of votes cast at a particular meeting. A second meeting will be held on December 29.

Landcadia said: “The company believes the amendment is in the best interests of its stockholders, given the significant increase in the price of the company’s Class A common stock since the announcement of the business combination, and the overwhelming support of the business combination by stockholders who have voted thus far.”

In November, The New Jersey Casino Control Commission approved Golden Nugget’s request to merge with the blank-check company and to take the new company public.

If shareholders vote in favour of the merger on December 29, GNOG could launch as a public company in early January.