Date: Fri, 19-Dec-97 16:40:48 GMT Server: PowerWeb/4.02r9 MIME-version: 1.0 Content-type: text/html Content-length: 2735
November 25, 1997Dear Warrant Holder,
This letter is to remind you that on November 13, 1997 American Bingo & Gaming Corp. (the Company) announced that, under its Warrant Agreement, it has elected to redeem all 3.3 million of its outstanding public warrants. As a warrant holder, you are entitled to exchange your warrants for an equal number of common shares at $5.00 per share. The Company has set Monday, December 22, 1997 as the Redemption Date by which holders must tender their warrants. After this date the warrants will be redeemed by the Company at $.001 per warrant and will thus expire.
You should have received a package with exercise instructions for this warrant redemption. We strongly encourage you to review this material and make your exercise decision as soon as possible prior to the Redemption Date. If you have not received a package and/or have any questions about the warrant exercise process, please contact Mike Fearnow @ (713) 840-7500. If you have specific tax or legal questions, please refer them to your counsel.
Company management encourages you to exercise your warrants into common shares. Assuming all of the outstanding warrants are exercised, of which there can be no assurance, management believes the Company will be considerably stronger going forward because:
We sincerely thank you for yoursupport of the Company.
- Exercise of all outstanding warrants would infuse over $16 million into the Company, increasing cash balances for growth and expansion by a factor of up to 10x;
- Total assets would potentially increase to over $25 million, up from $10 million at September 30, 1997;
- The Company should qualify for NASDAQ-National Market System listing.
Greg Wilson
Chief Executive Officer
American Bingo & Gaming Corp.
515 Congress Avenue, Suite 1200
Austin, TX 78701
Telephone 512-472-2041
Fax 512-472-4307
E-mail play@ambingo.com