DHS Holding (OTC: DHSM) announced that its wholly owned subsidiary, DHS Belize, has received a license from the Belize Gaming Control Board to operate Cenote Falls Hotel & Casino. However, the news brought little cheer to the company’s share price, which started sliding in the first week of August following the announcement of the sale of business and consumer database company SalesKing.com. DHS Belize had previously received an online gaming license on August 1, 2012.
The Tennessee-based company is focused on mergers and acquisitions of companies operating under diverse domains. In the month of December 2011, DHS Holding acquired SalesKing.com, a database company. Three months later, the company announced the expansion of its business model to include GPS-based marketing solutions. In the month of March 2012, DHS Holding stated that SalesKing.com would launch a nationwide campaign to increase the company’s sales force and marketing presence throughout the United States.
On April 3, 2012, DHS Holding, with an aim to cash in on the tourism and gaming sector, declared that it had entered into an agreement for the purchase of 40 acres in the EPZ Zone, situated on the Belize-Mexico Border. A week later, the company submitted documentation to secure an online gaming license in Belize. As per a PricewaterhouseCoopers report, casino and online gambling revenues are estimated to reach $182 billion in 2015.
On April 12, 2012, DHS Holding began the first phase of development of the Cenote Falls Shopping Center.
DHS Holding voluntarily retired 50 million shares of common stock on April 12, 2012, claiming it was an effort to increase shareholders’ equity and insisted that it was not a reverse split. Within a week, the company secured financing for its project from Clipper Explorations, Ltd. As per the terms, $250,000 was made available in the first round of financing for DHS Holding. The company retired an additional 25 million shares of common stock on May 3, 2012.
On August 1, 2012, the company announced its intention to sell SalesKing.com to focus on the expansion of its subsidiary in Belize. DHS Holding was certified to operate the online gaming business on the same day by the government of Belize.
The company’s share price rose from $0.0380 to $0.40 in the last week of July, prior to the announcement to sell SalesKing.com. Following that news, the share price depreciated to $0.15 in the past two months.
Today, DHS Belize received its license for Cenote Falls Hotel & Casino. The casino needs an environmental clearance and inspection before commencing the commercial operation. DHS Holding President Charles Barrett stated, “This is great news. These contingencies are the norm for obtaining a gaming license and should in no way hinder our efforts to move forward.”
Even though the stock registered high volumes today, the share price lost ground. DHS Holding ended the day at $0.1723, down $0.0077 or 4.3% on a volume of 519,000 shares.
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