Success Dragon to place US$28 mln in convertible bonds

Jun 03, 2016 Newsdesk Latest News, Rest of Asia  

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Gaming services firm Success Dragon International Holdings Ltd says it has entered into separate agreements via three agents, to place an aggregate of HKD220 million (US$28.3 million) in convertible bonds.

It said the terms of the placing arrangements were identical, and on a best efforts basis, and were based on a conversion price of HKD0.83 per conversion share.

The company stated, in a Thursday filing to the Hong Kong Stock Exchange, that the maximum net proceeds from the exercise would be approximately HKD211.01 million, which would be used for “the development and expansion of the group’s business, investment and general working capital of the group”.

A maximum of 265,060,240 conversion shares would be allotted and issued upon the full exercise of the conversion rights. That would represent approximately 15.71 percent of the existing issued share capital of the company, and approximately 13.58 percent of the issued share capital as enlarged by the issue of the conversion shares in full, the group added.

The placing agents are: Kingsway Financial Services Group Ltd; BaoQiao Partners Capital Ltd; and Opus Capital Ltd.

Success Dragon reported a net loss of HKD231.5 million for the fiscal year ended March 31, 2016. The group’s loss widened from the HKD47.3 million recorded in the previous year.

On April 29, Success Dragon announced it had entered into an agreement for the provision of outsourced management services for greyhound racing in Vietnam.

On March 30, the company said it had agreed to acquire a stake in a five-star hotel – as well as land for further development – in Danang, Vietnam.

Success Dragon is the parent company of Macau-based casino services provider CY Management Ltd. The latter firm provides management services to three casinos in Macau and information technology services to two other casinos in the city, according to Success Dragon’s 2014/15 annual report.

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