Hong Kong-listed LET Group Holdings Ltd has raised HKD48.5 million (US$6.2 million) in net proceeds from a placement of 269 million shares at a placing price of HKD0.186 apiece.
The firm said in a filing on Friday that, following the exercise, the stake in the firm held by controlling shareholder Andrew Lo Kai Bong had been reduced to 72.07 percent from a share of 74.98 percent prior to the operation.
LET Group – formerly known as Suncity Group Holdings Ltd – has had, in the course of its business, interest in a number of casino projects in the Asia-Pacific region, including in Vietnam and the Philippines.
The company also has an interest – via Hong Kong-listed Summit Ascent Holdings Ltd and its units – in a hotel and gaming business called Tigre de Cristal in the Integrated Entertainment Zone of the Primorye Region, near Russia’s Pacific port of Vladivostok.
LET Group stated in its Friday announcement that the placing shares in its exercise had been taken up by “not less than six” recipients, said to be third parties independent of the firm. None of them had become “a substantial shareholder” of the company immediately upon completion of the placing.
The firm had stated, at the time it announced the share placement, it intended to apply HKD19.0 million from the net proceedings of the placement to “repay the interest” of an outstanding loan of HKD400 million advanced to the company by “four independent third party lenders” last September.
LET Group also planned to use HKD10.0 million from the net proceedings of the placement to “settle the arrangement fee” for a revolving loan of up to HKD500 million provided by Summit Ascent, a deal that had been announced last month.
The remaining net proceeds of approximately HKD19.5 million would be used for general working capital, it added at the time.
