Preparing for the entry of a new strategic investor, gaming firm Leisure and Resorts World Corp. (LR) obtained on Friday an approval from shareholders to beef up its capital stock through private placement.
In a disclosure to the Philippine Stock Exchange, LR said it obtained clearance to issue up to 1.3-billion common shares from its unissued capital stock through a private placement “at a price based on a premium” over the closing price on Nov. 29, 2018.
Shareholders also granted authority to the board of directors to implement the private placement, including but not limited to the determination of the issue price and the subscriber or subscribers to the shares to be issued.
Biz Buzz earlier reported that an Asian gaming firm bullish on LR’s gaming operations in Cagayan Valley was planning a buy-in deal.
Based on a Dec. 21. disclosure, however, LR had said that “the details as to relevant parties and commercial terms of the private placement are not yet definite as of this time.”
The 1.3-billion maximum number of new shares that LR can issue is more than the 1.2-billion outstanding shares of the company at present. It is not expected to issue all these shares at once.
For the private placement, LR intends to use the proceeds to refinance some of its existing obligations and for general corporate purposes.
Although LR’s casino project in Boracay is still in limbo, the Asian investor is interested in the group’s thriving operations in Cagayan Valley.
LR’s casinos are operated through the following wholly owned units: Prime Investment Korea Inc., Blue Chip Gaming and Leisure Corp. and Gold Coast Leisure World Corp. Online gaming operations are done through First Cagayan Leisure and Resort Corp., LR Data Center and Solutions Inc. and First Cagayan Converge Data Center Inc. Bingo and other retail gaming operations are operated by 100-percent owned AB Leisure Exponent Inc. and Total Gamezone Xtreme Inc. Property interests are handled by wholly owned units AB Leisure Global, Inc. and LR Land Developers Inc.