A U.S. company has terminated its merger agreement with the Burnaby-based Gateway Casinos and Entertainment Ltd. – which operates the Grand Villa in Burnaby - that could have created a publicly traded company valued at nearly $1.5 billion.Leisure Acquisition Corp. says in a regulatory filing that it "elected to terminate" the Dec. 27 agreement and plan of merger as permitted if the combination wasn't completed by Wednesday. It gave no reason for its decision, which comes as Gateway tries to recover from being forced to shut down in response to the COVID-19 pandemic.
Under the plan, the special purpose acquisition company listed on Nasdaq was to be acquired by Gateway's parent GTWY Holdings Ltd., which planned to have a New York Stock Exchange listing.
The majority owner of GTWY is Catalyst Capital Group Inc., a private Toronto-based firm. Its managing director, Gabriel de Alba, is executive chairman of Gateway.
Gateway operates 25 gaming and entertainment destinations in British Columbia, including Burnaby and the Starlight in New Westminster, and Ontario.
With the Grand Villa still closed, business leader Paul Holden, president and CEO of the Burnaby Board of Trade, is urging the B.C. government to allow it to reopen.
“(The Grand Villa) is one of Burnaby’s largest (businesses), providing opportunities to over 1,100 residents in its Burnaby location to earn a living, contribute and support themselves and their families - not to mention the 7,100 others who work throughout its other locations,” Holden wrote in an op-ed to the NOW. “This business serves as an important part of our tourism sector, helping position Burnaby as a dynamic urban centre with dining and entertainment options for locals and visitors alike.”
They are also a major taxpayer, contributing nearly $900,000 in property taxes last year directly, and an additional $12.3 million in direct contributions to the city, which is used to pay for community projects, hold festivals, and fund community initiatives.
- With files from the Canadian Press
