Las Vegas Railway Express Inc (OTCMKTS:XTRN) Receives Buyout Offer

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Las Vegas Railway Express Inc (OTCMKTS:XTRN) suddenly popped up on traders’ radars this week as it was revealed that the company has received a combined stock and cash buyout offer from X RAIL ENTERTAINME COM USD0.00001 (OTCMKTS:XREE).

Meanwhile XTRN stock itself awakened from the dead, setting an all-time daily volume record for itself during Monday’s session, and undergoing some of the first meaningful price action since very early on in 2017.

 

As we just mentioned, Las Vegas Railway Express Inc (OTCMKTS:XTRN) relayed the fact that X RAIL ENTERTAINME COM USD0.00001 (OTCMKTS:XREE), owner of the X Wine Railroad, X Train, and Club X Train membership businesses, CEO Michael Barron announced that the company has made a tender offer to the management of Las Vegas Railway Express, Inc. to acquire 100% of the Company’s outstanding stock, liabilities and assets in exchange for $20 million in cash and stock from X Rail Entertainment, Inc.

 

CEO Michael Barron stated, “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. (XTRN).”

 

The offer would deposit into XTRN the total of $20 million in cash and securities in exchange for 100% of the Company.

“This consolidation of interests is being done to benefit the many shareholders who invested in the project of running trains between LA and Las Vegas and who may have had their equity diminished,” stated Barron. “We just want all those who helped us get here have an opportunity to participate in the rewards of execution on this project.” (Source: Marketwired)

According to an IbisWorld.com Industry Report on the Scenic Transport Industry, an under-the-radar sector that is already thriving, could see considerable growth in value and popularity in years to come. A couple of the reasons given were, Increased disposable income boosting demand for sightseeing transportation, asTravel spending is projected to increase over the next five years as the economy improves.

 

 

The Sightseeing Transportation industry has improved over the past five years, spurred by rising demand following recessionary lows. Improving employment conditions have boosted consumer incomes and precipitated an increase in demand for recreational activities such as sightseeing tours. Consequently, industry revenue is estimated to grow over the five years to 2016. Over the five years to 2021, the industry is forecast to experience continued growth, with industry operators responding favorably and more looking to enter the market to partake in the rising demand. Despite rising total industry revenue, some industry segments are expected to experience more growth than others. (Source: IbisWorld)

As far as Vegas itself is concerned, while growth has slowed over the years, and international tourism is also at a low level, the upcoming added value of an NFL Franchise and accompanying world-class venue, especially one with a widespread loyal fanbase like the Raiders, cannot be understated. NFL cities enjoy seasonal benefits and it can be safely assumed that NFL fans around the world will be circling their team’s visits to Las Vegas as must-attend games for the added vacation value that the city offers.

All the more reason why a company with its hands in the Vegas tourism business should be on our radars. We’ll continue to track XTRN (as well as XREE) as the story progresses.  Just stay locked to Street Register for updates, and we’ll deliver important developments on XTRN and XREE as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!

Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in XTRN or XREE stock, short or long.

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