Leisure Resorts World Corp. plans to sell up to 1.3 billion common shares through a private placement mainly to refinance debts.
The sale of 1.3 billion common shares will raise as much as P4.3 billion in proceeds based on LRWC’s current market price of P3.30 per share.
LRWC said in a filing with the Philippine Stock Exchange its board proposed the issuance of up to 1.3 billion common shares to investors from the unissued capital stock of the company.
“The proceeds of the proposed private placement will be used to refinance some of the company’s existing obligations and for general corporate purposes,” LRWC said.
LWRC said the proposed sale of shares by the company will be done through a private placement to investors totaling less than 19.
The issuance of the shares might have a dilutive effect to current shareholders, the company said.
LRWC will conduct a special shareholders’ meeting in Janaury next year to seek stockholders’ approval on the proposed share sale.
LRWC posted a consolidated net income of P266 million in the first nine months of the year, down 26.6 percent from P362.7 million year-on-year.
The decline was mainly due to divestment from the City of Dreams project, recognition of the franchise tax on retail’s gross gaming revenues amounting to P163.6 million, which is more expensive than income tax, and the non-recognition of deferred tax assets of P112.5 million for LRWC.
The group’s casino division contributed P263.2 million in net income during the period, up 70 percent from P155.3 million a year ago.
On line gaming contributed P48 million to the total consolidated net income, up 77 percent from last year’s P27.1 million due to the significant decrease in operating expenses.
LRWC plans to start next year the redevelopment of the Cyberpark, a 10-hectare pocket light industrial park in Sta.Ana, Cagayan province.