Philippine gaming investor Leisure and Resorts World Corp says at least 40 percent, and up to half, of the nearly PHP2.1-billion (US$40.1-million) proceeds from a private placement of some currently-unissued shares, would be spent on its “expansion programmes and working capital requirements”.
On March 9, the firm had mentioned spending some proceeds on “developing the company’s online platform aiming to provide its clients new and better gaming experience”.
The remainder of the funds will go on paying down Leisure and Resorts’ debts and existing obligations, the group said in a Tuesday filing to the Philippine Stock Exchange.
The announcement said that as a result of the exercise, the public float of the company would be reduced to 21.03 percent, from 31.98 percent.
The exercise was approved by Leisure and Resorts’ board on March 7. The subscription shares are being created by reclassification of preferred shares to common shares.
The move is subject to approval by the country’s Securities and Exchange Commission. The company said it “expects the application to be approved by SEC within three to six months”.
Leisure and Resorts had previously been linked to a US$500-million casino plan for the Philippine holiday island of Boracay, which at the time was described as a partnership with Macau casino operator Galaxy Entertainment Group Ltd.
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