GAMING firm Leisure and Resorts World Corp. (LRWC) on Tuesday said it raised P4.38 billion from private placement from a group of investors who took newly issued common shares from the company.
In its disclosure to the Philippine Stock Exchange, the company said it issued 1.21 billion common shares from its unissued capital stock at P3.60 apiece. Its shares were voluntarily halted for trading on Tuesday as a result of the deal.
Some 230 million common shares were each given to Fortunegate Holdings Philippines Inc., Millennium Pan Asia Business Management Services Inc., XII Capital Inc. and Diamond Fortune Holdings Inc., 121 million common shares to Euphonious Holdings Inc. and 176.64 million common shares to Leisure Advantage Inc.
In January, the company’s shareholders approved the issuance of up to 1.3 billion common shares from its unissued capital stock.
LRWC’s shares were last traded at P3.98 apiece.
The company earlier said the proceeds of the fund-raising will be used to refinance some of the company’s existing obligations and for general corporate purposes.
In particular, the company said it will be used to refinance the P2.5-billion debt the company used to finance the acquisition of its 23-hectare Boracay property, eyed to be an integrated gaming resort in the island.
LRWC said the $550-million facility, earlier reported to be being conceptualized together with Macau’s Galaxy Entertainment Group Ltd. (GEG), “will redefine the standards of luxury resorts in the country with bulk of its gross floor area allocated for premium hotel rooms and other amenities like wellness centers, bars, lounges and fine-dining restaurants.”
GEG is one of the world’s leading resorts, hospitality and gaming companies. It primarily develops and operates a large portfolio of integrated resort, retail, dining, hotel and gaming facilities in Macau.
In December 2017, GEG and LRWC were granted a provisional gaming license to operate Boracay Philippines Resort and Leisure Corp.