Summit Ascent spends $3.2m on EGMs for Russia venture

Hong Kong-listed Summit Ascent said it agreed to pay $3.2 million on electronic gambling machines for a casino project in Primorye in Russia’s Far East.

The company, through its units, will buy 300 EGMs from Tiga Rus.

Payment will be made in 12 monthly installments after the casino begins operations and will be funded by internal resources.

For any given month after the casino has commenced operation, if the average daily GGR

per unit of the equipment is less than the baseline GGR in effect for that month,

TGI, Tiga Rus’ parent, is liable for making a guaranteed win payment to Summit Ascent unit Oriental Regent.

The board said it believes the purchase and management services accord will improve the operational efficiency of the casino, reduce costs, increase GGR and improve the overall competitiveness.

The opening for the project has been rescheduled for the second quarter of 2015. Even if the project meets the new target date, it will still be a year behind schedule as its construction was to be completed in April 2014.

 

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