Shareholders of Leisure Resorts World Corp. approved the company’s plan to sell a maximum of 1.3 billion in new primary shares through a private placement to refinance debts.
LRWC said during a special shareholders’ meeting it would issue up to 1.3 billion in new shares at a price based on a premium over the closing price of the stocks on Nov 28.
Shareholders authorized the board to implement the private placement, and determine the issue price and the subscribers to the shares.
LWRC chairman Reynaldo Bantug said the company would use the proceeds from the private placement to refinance some of the company’s existing obligations and fund corporate expansions.
The issuance of the shares might have a dilutive effect to current shareholders, the company said.
LRWC in the first nine months of the year posted a consolidated net income of P266 million, down 27 percent from P362.7 million year-on-year.
The company attributed the lower income to its divestment from the City of Dreams project, recognition of franchise tax on retail’s gross gaming revenues amounting to P163.6 million which is more expensive than income tax, and non-recognition of deferred tax assets of P112.5 million.
The group’s casino division contributed P263.2 million in net income for the period, up 70 percent from P155.3 million on year.
On line gaming contributed P48 million to the total consolidated net income, an increase of 77 percent from last year’s P27.1 million due to the significant decrease in operating expenses.
LRWC plans to start this year the redevelopment of the Cyberpark, a 10-hectare pocket light industrial park in Sta.Ana, Cagayan province.
The Cyberpark is currently being master-planned to host office buildings and residential dormitories for online gaming operators. Two legacy buildings have already been fully leased out to a locator while the next development phase, primarily for office spaces, will start in the fourth quarter of 2018.