LET Group seeks US$6 million in funds via share placement

Feb 06, 2023 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck  

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Hong Kong-listed LET Group Holdings Ltd plans to raise up to HKD48.5 million (US$6.2 million) in net proceeds from a placement of up to 269 million shares at a placing price of HKD0.186 apiece.

The firm said in a filing on Friday that the placing shares would represent approximately 3.88 percent of the total issued shares as enlarged by the allotment and issue of the placing shares.

The placing price per share represents a discount of 9.27 percent to the value of LET Group’s shares as of market close on Friday at the Hong Kong Stock Exchange.

The company stated it was expected the placing shares would be taken up by “not less than six” recipients, third parties independent of the firm.

LET Group said in its Friday filing 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 plans 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 subsidiary Summit Ascent Holdings Ltd, 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.

LET Group – formerly known as Suncity Group Holdings Ltd – has in its lifespan had 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 and its units – in a hotel and gaming business at Tigre de Cristal in the Integrated Entertainment Zone of the Primorye Region, near Russia’s Pacific port of Vladivostok.

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