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LAS VEGAS-FX Real Estate and Entertainment Inc., the publicly held owner of 18 acres at Harmon Avenue and the Las Vegas Strip, filed a registration statement regarding its rights offering, whereby it will offer its stockholders the right to purchase for $10 one additional share of company stock for every two shares they currently hold as of a date that has yet to be determined. In early afternoon trading, shares of the company were trading at $7.74, down $0.14 on the day.

Holders of approximately half of the company’s 40 million outstanding shares waived their right to participate in the offering, but FXRE chairman and chief executive Robert F.X. Sillerman and the Huff Alternative Fund LP have agreed to purchase shares that are not otherwise subscribed for the rights offering. As a result of the “backstop” agreements, the company expects to sell all of the shares being offered in the offering, resulting in gross proceeds of $98.7 million.

FX Real Estate and Entertainment owns 17.72 contiguous acres of land on the southeast corner of Las Vegas Boulevard and Harmon Avenue, which it refers to as the Park Central site. In July, FX paid Africa-Israel Investments Ltd. $180 million for the 50% interest in the property it did not already own. The property is currently occupied by a motel and several commercial and retail tenants. FXRE intends to pursue a hotel, casino, entertainment, retail, commercial and residential development project on the site that would have an Elvis Presley theme.

FXRE previously entered into license agreements with Elvis Presley Enterprises Inc., an 85%-owned subsidiary of publicly traded CKX Inc., and Muhammad Ali Enterprises LLC, an 80%-owned subsidiary of CKX, which allows it to use the intellectual property and certain other assets associated with Elvis Presley and Muhammad Ali in the development of its real estate and other entertainment attraction-based projects. The license agreement with Elvis Presley Enterprises also grants FXRE the right to develop one or more hotels as part of the master plan of Elvis Presley Enterprises Inc. to redevelop the Graceland property and surrounding areas in Memphis.

Sillerman owns approximately 30% of both FX Real Estate and CKX. In addition to the Strip property, FX Real Estate, directly and through subsidiaries, owns an interest in Riviera Holdings Corp., owner and operator of the Riviera Hotel & Casino on the Strip.

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