Butler National Corporation, a recognized provider of professional management services in the gaming industry, announces its subsidiary, Butler National Service Corporation (BNSC) closed on the purchase of the minority equity ownership interest in BHCMC, LLC, (BHCMC) that results in BNSC being the sole owner of BHCMC, manager of the Boot Hill Casino & Resort.
BNSC purchased the 2000 Class A Preferred Membership Units from BHC Investment Company, LC for approximately $16.4 million including an allocation for taxes. The Sale and Purchase of the Preferred Units in BHCMC, LLC makes BNSC the sole owner/member of BHCMC.
The purchase of the BHC Investment Company, LC interest was funded from company funds and $8.0 million of commercial bank debt. The purchase transaction was approved by Kansas Racing and Gaming Commission on October 15, 2021, with an effective date for the ownership transfer of August 1, 2021 and a closing date of October 18, 2021.
The ownership of 100% of the equity combined with the December 2020 Building and Land purchase provide significant long-term benefits for BHCMC and BNSC. These strategic transactions allow BHCMC to continue to grow with future development opportunities. This equity purchase provides a clear path forward to achieve the mutual goals of BHCMC, BNSC, and the State of Kansas and ultimately benefit the shareholders of Butler National Corporation.
“We have worked diligently to reach our goal of owning all the equity of the Boot Hill Casino manager, BHCMC. The sole Butler ownership of BHCMC achieves a significant milestone for all Butler National shareholders. We appreciate the advice, assistance and participation of our business partner, BHC Investment Company, LC. They were essential in the development of the Boot Hill Casino and casino gaming in Kansas,” Clark Stewart, President and CEO of Butler National said.