Canterbury Park Holding Corp. has set June 28 as the date for its annual meeting. The meeting will be held at the company’s horse racing track in Shakopee. At the meeting shareholders will vote on a new holding company structure.
The company had hoped to hold a special shareholder meeting last fall to approve the transaction but the meeting was delayed as the company sought further approvals from the Minnesota Racing Commission (MRC) and the Securities and Exchange Commission (SEC).
Under the proposal a new holding company will serve as the parent to two subsidiary companies. An entertainment subsidiary, Canterbury Park Entertainment LLC, will control the company’s racetrack and card club operations. A property development subsidiary, Canterbury Development LLC, will continue the company’s efforts to commercially develop as much as 140 acres of company-owned vacant land adjacent to the racetrack.
“The Reorganization is a key element to our future development plans,” Randall Sampson, CEO of Canterbury Park, said in the company’s release. “It will not only enable the company to legally separate its regulated gaming businesses from its real estate development activities, it will also establish a structure which offers strategic, operational and financing flexibility.”
Canterbury Park Entertainment LLC will be subject to direct regulation by the Minnesota Racing Commission.
The development company will not be subject to MRC regulation and now should have an easier time developing the property surrounding the racetrack.
If approved at the meeting the reorganization will go into effect on June 30 and the new holding company, NewHoldingCo, will change its name to Canterbury Park Holding Corp.
Also at the meeting shareholders will be asked to elect board members, affirm the company’s choice of audit firms and approve the control share purchase agreement between the company and investment advisory firm Gabelli Group.
The Gabelli Group is seeking to increase its ownership in the company from 18 percent to 24.9 percent of all company shares outstanding. Under the Minnesota Control Share Acquisition Act, shareholders need to approve the acquisition so Gabelli can vote all of its shares.