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Red Deer, Alberta--(Newsfile Corp. - May 12, 2026) - Gamehost Inc. (TSX: GH)
Management and Directors of Gamehost Inc. (the "Company") present results for the three months ended March 31, 2026 (the "Quarter").
On March 30, 2026, the Company and Pure Casino Entertainment Limited Partnership ("Pure") announced that they had entered into a definitive arrangement agreement (the "Arrangement Agreement") pursuant to which Pure will, indirectly through a subsidiary, acquire all of the issued and outstanding common shares of Gamehost for $13.65 in cash per share (the "Transaction"). Pure operates casinos in Alberta and is privately held by Indigenous Gaming Partners Inc. ("IGP"), a gaming partnership between five Nova Scotia First Nations and Sonco Gaming Inc. The cash consideration of $13.65 per Gamehost Share offered to the Gamehost shareholders pursuant to the Transaction represents a premium of approximately 16% to Gamehost's closing price of $11.75 per Gamehost Share on the TSX on March 27, 2026, being the last trading day prior to the announcement of the Transaction, and a premium of approximately 17% to Gamehost's 20-day volume weighted average price on the TSX of $11.67 per Gamehost Share as of the close of markets on March 27, 2026. The Transaction is expected to close in mid-June 2026.
The Company will hold a Special General Meeting ("SGM") of shareholders June 11, 2026 where Gamehost shareholders will be asked to consider and, if deemed advisable, to pass a special resolution approving the Arrangement Agreement. A Management Information Circular (the "Information Circular") containing a detailed description of the Transaction as well as background and reasons for the Transaction has been filed and is available on Gamehost's profile at www.sedarplus.ca.
The Company incurred significant Transaction related costs during the Quarter resulting in uncustomary low earnings before interest, taxes, depreciation and amortization ("EBITDA"), profit, and earnings per share.
The Arrangement Agreement permits the continuation of the Company's regular monthly dividend of $0.05 per common share through to close of the transaction.
In addition to shareholder approval, a number of regulatory hurdles remain before the Transaction can close including receiving approvals from both Alberta Gaming Liquor and Cannabis and the Federal Competition Bureau. For over two decades, I have had the pleasure of working with dedicated team members to create an entertainment and hospitality company that provides extraordinary experiences for our guests, employees and community. I am excited to pass on this legacy to Pure, a proven leader in the Alberta gaming industry. I am confident that they will continue to provide a high-quality guest experience and exceptional environment for our employees.
| Gamehost Inc. | ||||||||||
| Financial Highlights | ||||||||||
| Unaudited - Canadian dollars (thousands except per share figures) | ||||||||||
| three months ended March 31 | ||||||||||
| 2026 | 2025 | % Chg. | ||||||||
| Operating revenue | $ | 21,155.7 | $ | 21,222.3 | (0.3%) | |||||
| Cost of sales | ||||||||||
| Other | (11,703.4 | ) | (11,674.1 | ) | ||||||
| Depreciation | (803.0 | ) | (805.5 | ) | ||||||
| (12,506.4 | ) | (12,479.6 | ) | |||||||
| Gross profit | 8,649.3 | 8,742.7 | (1.1%) | |||||||
| Lease and other income | 40.7 | 54.5 | ||||||||
| Administrative expenses | ||||||||||
| Other | (4,165.1 | ) | (1,174.2 | ) | ||||||
| Depreciation | (196.6 | ) | (206.4 | ) | ||||||
| (4,361.7 | ) | (1,380.6 | ) | |||||||
| Profit from operating activities | 4,328.3 | 7,416.6 | (41.6%) | |||||||
| Gain on disposal of assets | 68.3 | - | ||||||||
| Net finance costs | (380.5 | ) | (451.2 | ) | ||||||
| Profit before income tax | 4,016.1 | 6,965.4 | ||||||||
| Income tax expense | (877.2 | ) | (1,608.0 | ) | ||||||
| Profit and comprehensive profit | 3,138.9 | 5,357.4 | (41.4%) | |||||||
| Earnings per share | ||||||||||
| Basic and fully diluted | $ | 0.15 | $ | 0.26 | (41.0%) | |||||
| Weighted average number of common shares outstanding | ||||||||||
| Basic and fully diluted (x 000) | 20,679.8 | 20,978.9 | ||||||||
| EBITDA | $ | 5,351.2 | $ | 8,464.6 | (36.8%) | |||||
| EBITDA % | 25.3% | 39.9% | ||||||||
| 31-Mar-26 | 31-Dec-25 | |||||||||
| Cash | $ | 14,389.1 | $ | 15,158.4 | ||||||
| Total assets | $ | 172,541.4 | $ | 174,600.9 | ||||||
| Total debt | $ | 28,838.6 | $ | 31,566.8 | ||||||
Gamehost has declared a regular monthly cash dividend for the month of May 2026 of $0.05 (CDN) per common share which equates to $0.60 (CDN) per common share on an annualized basis. The dividend will be paid on June 11, 2026 to shareholders of record on May 31, 2026. This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.
This press release may contain certain "forward-looking information" or statements within the meaning of applicable securities legislation and may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans", "withstand", "further" or other similar expressions that suggest future outcomes or events. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including any statements that address expectations related to future economic outcomes or the Company's dividend. Forward-looking statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements.
The Company has included non-International Financial Reporting Standards ("non-IFRS") measures in this press release. EBITDA, as defined by the Company, means earnings before interest (financing costs), income taxes, depreciation and amortization and foreign exchange gains or losses, and items such as fair value adjustments or impairment charges. The Company believes EBITDA is a useful measure because it provides information to management and investors about the Company's performance in generating operating cash flow to fund working capital needs, service debt obligations, fund future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The Company's method of calculating non-IFRS measures may not be comparable to similarly titled measures used by other reporting entities.
Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Rivers Casino & Entertainment Centre in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels as well as a commercial strip all located in Grande Prairie and the Deerfoot Inn & Casino in S.E. Calgary.
These consolidated interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in consolidated interim financial statements and should be read in conjunction with the 2026 Q1 consolidated interim financial statements. Further, while the financial figures included in this announcement have been computed in accordance with IFRS applicable to annual periods, this announcement does not contain sufficient information to constitute an annual financial report and should be read in conjunction with the 2025 annual financial report for the twelve and three months ended December 31, 2025. This interim report will be filed in its entirety, along with historical financial reports on the Company's website at www.gamehost.ca and on Gamehost's SEDAR+ profile at www.sedarplus.ca along with the Company's other continuous disclosure documents, when they are available.
Gamehost common shares trade on the Toronto Stock Exchange (TSX) under the symbol GH. For more information, contact:
Craig M. Thomas or Darcy J. Will
P (877) 703-4545
F (403) 340-0683
E ir@gamehost.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297217
Source: Gamehost Inc.
