Gaming company Leisure & Resorts World Corp. plans to raise fresh capital from the sale of up to 1.55 billion common shares through a private placement.
Based on LRWC’s closing price of P1.50 per share on Thursday, the proposed sale of 1.55 billion common shares will enable it to raise up to P2.33 billion.
The shares will come from the unissued capital stock of the company and will have the same features as the existing common shares, including voting and dividend rights.
The proceeds from the fund raising exercise will be used to refinance debts and for general corporate purposes. LRWC said it had P3.59 billion in liabilities as of end-September.
LRWC said it would apply for confirmation for an exempt transaction from the Securities and Exchange Commission as the shares will be sold to less than 19 investors.
The company will hold a special stockholders’ meeting on Jan. 22, 2022 to seek shareholders’ approval on the planned private placement.
LRWC earlier reported a net loss of P106.8 million in the third quarter, narrower than the P284.6-million loss it booked in the same period last year.
Gross revenues rose 16.5 percent in the third quarter to P486.6 million from P417.7 million a year ago.
LRWC is primarily in the business of gaming, recreation, leisure and lease of property.
It plans to revive its proposed casino project in Boracay after President Rodrigo Duterte lifted the moratorium on new casino developments in September.