Hall of Fame Resort & Entertainment Co. (Nasdaq: HOFV, HOFVW) got a loan to get out of a tough financial situation.
The company that owns the Hall of Fame Village project in Canton said in a statement Press release on Wednesday, December 2, that he entered into a financing agreement arranged by a subsidiary of Aquarian Holdings for a $ 40 million loan that he will use to pay off the balance of an existing bridging loan.
The Hall of Fame Resort’s third-quarter filing with the U.S. Securities and Exchange Commission showed it had a $ 34.5 million bridge loan maturing on November 30.
In the statement, the Hall of Fame Resort said the new loan “has a term of 12 months with the possibility of being extended for an additional 12 months.” He said the remaining funds from the new funding agreement and the recent $ 25 million capital increase “Will provide additional working capital to help advance HOFV’s strategic priorities, including the continued construction of Phase II” of the sprawling Hall of Fame Village project.
The second phase includes a renovated DoubleTree by Hilton hotel in downtown Guangzhou. It will also include the Center for Performance, a 100,000 square foot indoor sports complex and training center; the Constellation Center of Excellence, a 75,000 square foot mixed-use facility; a covered football-themed water park; additional youth fields; a commercial promenade; stadium enlargements; and a hotel on campus.
Michael Crawford, president and CEO of Hall of Fame Resort, said in a statement that the funding agreement with Aquarian “allows us to meet the maturity of our debt while providing us with the opportunity to move forward. our strategic business plan for phase II. He added, “We are energized by the great progress we are making and look forward to advancing our short and long term goals for our investors.”
Hall of Fame Resort became a public corporation in July following a merger with Gordon Pointe Acquisition Corp. The company said in the statement that it had made “considerable progress in developing its various lines of business and diversifying its sources of income.” These flows include partnerships signed with companies such as Shula’s Restaurant Group, Sports Illustrated Studios, TopGolf and Republic Services. He also acquired and rebranded what he calls a “national community-supported fantasy football league,” known as the Hall of Fantasy League, and helped establish the NFL Alumni Academy.
However, the company recorded an operating loss of about $ 10.3 million for the third quarter, nearly half of the $ 22.2 million in operating losses it incurred for the year. (Go here for a breakdown, via Crain associate editor Kevin Kleps of company finance.)