Date: Fri, 19-Dec-97 16:41:16 GMT Server: PowerWeb/4.02r9 MIME-version: 1.0 Content-type: text/html Content-length: 3215 American Bingo & Gaming Corp. Announces $16.5 Million Warrant Call

American Bingo & Gaming Corp. Announces $16.5 Million Warrant Call

AUSTIN, Texas, Nov. 13 /PRNewswire/ -- American Bingo & Gaming Corp. today announced that it has elected to call its 3,317,500 publicly traded Redeemable Common Stock Purchase Warrant (Nasdaq: BNGOW ). The Comapny is calling its warrants under the terms of its Warrant Agreement which allow the Company to call the warrants when the Company's common stock closes at $8.00 per share or higher for 20 consecutive days, which occurred on November 4, 1997. Each warrant share can be exchanged for one common share at a price of $5.00. Warrant holders have until Friday, December 19, 1997 to tender their warrants. The Company's closing bid stock price as of last night was $8.56 per share.

Assuming all outstanding warrants are redeemed, this warrant call will:

Greg Wilson, President and Chief Executive Officer, stated ``We are pleased to have increased our shareholder value by over 500% since the beginning of the year which allowed us to call our warrants. We have delivered nearly a 30% return on equity over the past four quarters and we continue to see a wealth of attractive investment opportunities with potential returns in this range. Therefore, we decided to call the warrants to aggressively pursue these opportunities. We look forward to communicating our investment plans to investors in the near future.''

The Company has scheduled a conference call today a 4:15 Eastern Standard Time (3:15 Central and 1:15 Pacific) to discuss the third quarter results and current growth and financing plans. Interested investors are invited to call 1-800-275-3210, toll-free, at this time to listen to the call, or may call 1-888-298-2143, toll-free, through Friday, November 21, 1997 to listen to a recording of the call.

American Bingo is the market leader in the estimated $5.0 billion North American charitable bingo market. The Company derives revenues from its 18 bingo centers in Texas, Alabama and South Carolina, and earns gaming revenues from its 270 video gaming machines currently operating in South Carolina, with over 200 machines added in the last three months. Except for historical information contained herein, certain matters set forth in this press release are forward-looking statements that are subject to risks and uncertainties, including customer attendance and spending, competition, capital resources, government regulation, general economic conditions and other risks detailed in the Company's SEC reports.

HOME | WARRANT INFORMATION CENTER