Las Vegas Railway Express (OTCMKTS:XTRN)
The CEO of X RAIL ENTERTAINME COM USD0.00001 (OTCMKTS:XREE), Michael Barron, has disclosed that the firm has offered to acquire Las Vegas Railway Express Inc (OTCMKTS:XTRN) assets, liabilities and outstanding stock for $20 million in stock and cash. X Rail Entertainment, which runs specialty passenger trains that operate from metropolitan areas of the United States to resorts, vineyards, casinos, and other gaming destinations, owns Club X Train, X Train and X Wine Railroad membership businesses.
“This is a consolidation of all of the X Train brands still held under a royalty agreement between X Rail Entertainment, Inc. (XREE) and Las Vegas Railway Express, Inc. (OTC PINK: XTRN),” said Barron after announcing the development.
Consolidation of Interests
Barron added that the consolidation of interests was being done in order to benefit shareholders who had invested in the train enterprise that operates between Los Angeles, CA and Las Vegas, NV.
The planned acquisition comes almost three years after Las Vegas Railway Express (OTC PINK: XTRN) started the route to the city of Las Vegas through conventional rail. The original plan was to have the rail pass through Cajon Pass and on to Barstow before heading north to the city of Las Vegas. However, due to restrictions on capacity an alternative route was planned with the assistance of Dr. Harry Teng who heads the UNLV Rail Engineering program and who developed the logistics of the alternative route. The plan that was developed is consistent with a 2007 plan that was drawn up by RTC and which suggested a link to Las Vegas through rail that originated from the west as opposed to access through the Cajon Pass which is heavily trafficked.
Luxury Train Services
At the time the chief executive officer of X Train admitted that the company had spent a considerable amount of time trying to retool efforts aimed at running the train service between the two cities. Barron also concurred with the alternative route that was suggested by UNLV. X Train’s CEO also revealed that the company had reached out to support both from a local and state level and they had received encouraging feedback from entities and individuals interested in investing in the opening of a third travel corridor to Las Vegas.
Besides a luxury train service that operates between Los Angeles and Las Vegas, the Las Vegas Railway Express (OTC PINK: XTRN) also runs luxury train services on other rail routes in the United States.
On Tuesday shares of X RAIL ENTERTAINME COM USD0.00001 (OTCMKTS:XREE) closed at $3.90.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.