Full House Resorts, a company that owns, operates, develops, manages, and/or invests in casinos and related hospitality and entertainment facilities, said Monday that it has commenced a $5 million rights offering.

The company expects to distribute, at no charge, non-transferable subscription rights to purchase shares of our common stock, par value $0.0001 per share, for $1.30 per share. The subscription rights will be exercisable for up to a total of 3,846,154 shares of Full House’s common stock.

The company expects the total gross proceeds of the proposed rights offering to be $5 million whether or not fully subscribed by the rightsholders because it is entering into a standby purchaser agreement with Daniel Lee, the company’s chief executive officer. The standby purchaser has agreed to purchase all shares not purchased by the rightsholders at the subscription price to the extent necessary to generate $5 million in gross proceeds, subject to the cap mentioned above. Consummation of the standby purchase is subject to usual and customary closing conditions.

FLL shares were down 1% in recent afternoon trade.