Buckle up … the news (we care about) has been moving too fast for Pokerati be the lone source keeping up with it all. And with this latest — Caesars has made it official … the Empire is going public (again)! — don’t be surprised if February/March 2012 turns out to be the biggest news month in poker since April 2011.
I haven’t quite yet figured out if and how this is different from an IPO. But I do know these sorta things don’t happen in a vacuum. And considering the last time Caesars — soon to be better known on NASDAQ as CZR — looked serious about going public was the last time they had reason to believe passage of online poker legalization was imminent (Dec 2010) … uh, um, gahhh! So much going on, so many old docs to look at, so much for Kevmath to hopefully fact-check … my head is spinning with the possibilities! (And I can only wonder who Barack Obama met with on the side when he visited Las Vegas long enough to stay the night in the suburbs a couple weeks ago,)
Probably not a bad time to remember that Caesars was a public corporation (called Harrah’s) that went private almost immediately after passage of the UIGEA, controversial legislation that leveled the impact of the biggest online poker sites in the world (at the time).
Read below for an official press release.
More…
In the understatement of the year, I am no stock market expert, I just read the occasional stock picking newsletter. But this news doesn’t look promising.
In an announcement on October 7th, Lakes Entertainment announced a stock dividend in all 12,480,000 shares in WPT Enterprises. That would be 61% of all outstanding common stock in WPTE.
“The spin-off of WPTE shares to our shareholders provides an option for them to monetize the value of WPTE shares if they so choose,” said Tim Cope, President and Chief Financial Officer of Lakes. “In addition, Lakes will benefit in that we will no longer be required to consolidate WPTE’s financial and business information in our SEC filings. This will enable us to provide greater transparency of Lakes’ operations and financial results to our shareholders and the public.”
Not long after WPTE was notified that it would be delisted from Nasdaq if it couldn’t bring the stock price back up to $1 or more for ten consecutive days in the next six months, Lakes seems to be bailing on the WPTE. While experts said that this won’t affect WPTE’s already-sinking stock prices (closing at $.50 today), it does signify Lakes’ intention of stepping back. Though there may not be any hard feelings between the two companies, it is a tough-love sort of move on the part of the company that once loaned the WPT money to get it off the ground. Kinda like kicking your 30-year-old son out of the house to make it on his own, knowing there is potential there and not wanting to aide his lazy ass for another day. Okay, probably not the best analogy, but it’s all I’ve got.
Uh-oh.
The stock price for WPT Enterprises has been consistently falling, with the exception of a minor fluctuation in early July, since it dropped below $1 per share in late June 2008. And despite CEO Steve Lipscomb’s “don’t worry, be happy” attitude about it, NASDAQ isn’t cool with that mantra. In the next 180-day time period, if WPTE’s price doesn’t stay above $1.00 for 10 consecutive days, the company will be delisted.
Here is the statement released today:
WPT Enterprises, Inc. Receives Nasdaq Staff Determination Letter Regarding Minimum Bid Price
LOS ANGELES, Aug 19, 2008 (BUSINESS WIRE) — WPT Enterprises, Inc. (NASDAQ:WPTE) today announced that the Company received a Nasdaq Staff Determination Letter on August 14, 2008, notifying the Company that it was not in compliance with the minimum stock listing price requirements of Nasdaq Marketplace Rule 4450(a)(5) as a result of the closing bid price for the Company’s common stock being below $1.00 for 30 consecutive business days. This notification has no effect on the listing of the Company’s common stock at this time. The Nasdaq Marketplace Rules provide the Company with 180 calendar days to regain compliance, which will require the bid price of the Company’s common stock to remain above $1.00 for a minimum of 10 consecutive business days. The Company will continue to execute its business plan to provide an opportunity to demonstrate value to the investment community and regain Nasdaq compliance.
You, too, can own a piece of the World Poker Tour. Maybe by tomorrow, shares will be on sale at the 99 Cent Store.
The stock price for WPT Enterprises, Inc. (WPTE on NASDAQ) hit $1.00. I’m not kidding.
While some people are buying it up in the hopes that someone will throw Lipscomb a life raft, word is that the WPTE employees are handing out resumes faster than players can buy in to a $1500 NLHE event at the WSOP. Even so, the World Poker Tour is still planning to hit Vegas for the Bellagio Cup in a few weeks to film the first episode of Season VII. Could be an interesting vibe over there!
