- The stock price of Urban One Inc (NASDAQ: UONE) increased by 59.07% today. This is why it happened.
The stock price of Urban One Inc (NASDAQ: UONE) increased by 59.07% today as it went from a previous close of $6.01 to $9.56. Investors responded positively to an SEC report about how a panel of officials picked Urban One’s casino project in South Richmond, which had concluded an evaluation of various casino development plans that the city was requesting.
Richmond voters are going to decide whether to permit the project in a referendum on November 2, pending approval from the City Council. And in a press release, Mayor Levar Stoney said that plans will be introduced to the City Council on Monday to partner with Urban One — which is a Silver Spring, Maryland-based American media conglomerate — to build a casino on the property currently owned by Philip Morris USA at the intersection of Commerce Road and Walmsley Boulevard.
The project is estimated to cost about $563 million and Urban One’s aggregate capital investment in RVAEH is anticipated to be up to approximately $100 million. The company’s investment is going to be sourced from a combination of cash on Urban One’s balance sheet and/or capacity from the company’s undrawn $50 million revolver. And Urban One also anticipates investment from local investors in the amount of $11.5 million dollars as well as a personal investment by Alfred C. Liggins, III, the Chief Executive Officer of the company.
“ONE Casino + Resort presents a tremendous opportunity to develop a resort casino project in Richmond,” said Mayor Levar Stoney. “The project will create over 1,000 good-paying jobs, generate a significant amount of new revenue for the city, and establish an additional economic engine in South Richmond. I applaud the work of the Evaluation Panel in their vetting of the proposals and engaging the entire city throughout this project.”
ONE Casino + Resort was proposed by Urban ONE in partnership with Peninsula Pacific Entertainment. Peninsula Pacific Entertainment owns and operates several casinos and Rosie’s Gaming Emporiums in Virginia.
“ONE is thrilled the Richmond casino selection committee has chosen the best project with the best location and best team to develop a world-class entertainment destination in Richmond’s Southside,” added Liggins. “Urban One and our diverse group of local investors are fully committed to creating good-paying jobs with profit-sharing for employees, pathways to successful careers, and generating significant new tax revenues that can improve Richmond’s schools and fund community programs and infrastructure.”
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