Canterbury Declares Special Dividend

Published by Lucky Dog under Casinos, Horse Racing, Indian Casinos, Minnesota.

Despite the fact that Canterbury Park has made an agreement with Mystic Lake Casino and declared a 25 cent per share special dividend (payable on July 12 to shareholders of record on June 28), the stock price has been dropping lately. The headlines of the agreement state that the Mystic would pay Canterbury 75 million over ten years to improve advertising and racing purses. One detail of the agreement that came out this week in an SEC filing, was that the tribe isn’t doing this for free. Part of the deal includes 165,000 shares of CPHC stock with a right to receive any appreciation in stock value over $14.30 per share in cash. For example, if CPHC stock hits $20 per share, Mystic would be eligible to receive about 100,000 in cash each year. It’s a  small incentive for Mystic, who really benefits by not having to worry about slot machines at Canterbury. There is also the fear that other local gambling facilities will challenge the agreement in court. This alone may be driving the dip in the stock price. I would be happy to see their stock price get closer to $14, but who knows what the future holds.

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