Lyle Berman and Lakes Entertainment Inc. have cashed in on the popularity of poker.
WPT Enterprises Inc., a subsidiary of Lakes, priced its initial public offering late Monday night and began trading Tuesday. WPT operates the World Poker Tour, which is televised on the Travel Channel and has become that cable station's most highly rated program.
The company raised $32 million offering 4 million shares at $8 a share. Local investment banking firm Feltl & Co. arranged the offering, which had been expected to price at $5 to $7 a share. The company will trade on the Nasdaq under the symbol WPTE. Shares closed Tuesday at $6.86, down $1.14.
Berman will be the CEO of the company, and its offices are in West Hollywood, Calif.
Berman is chairman and CEO of Lakes Entertainment, which owns 66.1 percent of WPT after the offering.
Berman also is the former CEO of Rainforest Cafe and is a director of Wilsons the Leather Experts Inc. Lakes finished the day at $9.35, down 40 cents.
WPT Enterprises is the developer of the World Poker Tour, a circuit of established poker tournaments that have affiliated under the World Poker Tour name. There are 15 stops on a circuit that concludes with the WPT Championship at the Bellagio in Las Vegas.
WPT hopes to capitalize on the popularity of its gambling tour by creating entertainment concepts derived from its brand. New concepts may include the production of fictional or reality-based content for television, movies or other audio-visual works that are based on the World Poker Tour circuit.
Proceeds of the offering will go toward working capital, capital expenditures and repayment of outstanding debts. Proceeds will be dealt to its three divisions: WPT Studios, the largest division, produces the World Poker Tour and accounts for 96 percent of the company's revenue; WPT Consumer Products, which generates sales through licensing and direct sale of merchandise featuring the World Poker Tour brand; and WPT Corporate Alliance, which generates sales through corporate sponsorships.
Patrick Kennedy
Star Tribune
WPT Enterprises Inc., a subsidiary of Lakes, priced its initial public offering late Monday night and began trading Tuesday. WPT operates the World Poker Tour, which is televised on the Travel Channel and has become that cable station's most highly rated program.
The company raised $32 million offering 4 million shares at $8 a share. Local investment banking firm Feltl & Co. arranged the offering, which had been expected to price at $5 to $7 a share. The company will trade on the Nasdaq under the symbol WPTE. Shares closed Tuesday at $6.86, down $1.14.
Berman will be the CEO of the company, and its offices are in West Hollywood, Calif.
Berman is chairman and CEO of Lakes Entertainment, which owns 66.1 percent of WPT after the offering.
Berman also is the former CEO of Rainforest Cafe and is a director of Wilsons the Leather Experts Inc. Lakes finished the day at $9.35, down 40 cents.
WPT Enterprises is the developer of the World Poker Tour, a circuit of established poker tournaments that have affiliated under the World Poker Tour name. There are 15 stops on a circuit that concludes with the WPT Championship at the Bellagio in Las Vegas.
WPT hopes to capitalize on the popularity of its gambling tour by creating entertainment concepts derived from its brand. New concepts may include the production of fictional or reality-based content for television, movies or other audio-visual works that are based on the World Poker Tour circuit.
Proceeds of the offering will go toward working capital, capital expenditures and repayment of outstanding debts. Proceeds will be dealt to its three divisions: WPT Studios, the largest division, produces the World Poker Tour and accounts for 96 percent of the company's revenue; WPT Consumer Products, which generates sales through licensing and direct sale of merchandise featuring the World Poker Tour brand; and WPT Corporate Alliance, which generates sales through corporate sponsorships.
Patrick Kennedy
Star Tribune
