RED DEER, ALBERTA–(Marketwire – Aug. 17, 2010) – Gamehost Income Fund (the “Fund”) (TSX:GH.UN)
GAMEHOST INCOME FUND – CAUTION TO INVESTORS
The management of Gamehost Income Fund (the “Fund”) wishes to highlight points from the Fund’s Q2 2010 financial results.
Readers of the Fund’s results for the six months ended June 30, 2010 (the “Period”) and three months ended June 30, 2010 (the “Quarter”) are directed to the note 18 of the Financial Statements. This note explains the accounting adjustments resulting from the Fund’s acquisition of a further 51% investment in the Deerfoot Joint Venture (the “Acquisition”). The Acquisition results in a non-cash gain of $23 million on the Fund’s original 40% investment due to revaluation from original asset cost to fair market value.
Furthermore, as noted throughout the MD&A, the Acquisition results in a change in accounting for ongoing results. The Fund reports 100% of the Deerfoot Joint Venture results. Net income is shared between the Fund and a non-controlling interest of 91% and 9% respectively. This results in significant comparative differences to the Fund’s pre-Acquisition results which report only 40% of the Deerfoot Joint Venture.
The Fund is an unincorporated open-ended limited purpose trust established under the laws of the Province of Alberta. The Fund’s activities are currently confined to the Province of Alberta, Canada. Operations include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites and a strip mall all located in Grande Prairie. The Fund is also a 91% joint venture partner in the Deerfoot Inn & Casino in Calgary.
Complete consolidated financial statements and MD&A for the three and six months ended June 30, 2010 are available on the company’s website at www.gamehost.ca and will be filed in their entirely along with the Fund’s other interim filings, when they are available, on SEDAR at www.sedar.com.