Hong Kong-listed gaming investor Amax International Holdings Ltd says it has fully completed a share offering that will allow it to waive HK$9 million worth of debt.
In a filing to the Hong Kong Stock Exchange, the company said it successfully completed the subscriptions on Thursday, allotting an aggregate of 37,188,000 subscription shares at HK$0.242 per share. The subscription shares represent 4.35% of the issued share capital of the company.
The three creditors include long-term financial advisory firm, Chanceton Capital, to which Amax owed HK$3.25 million, business consultant Skyline Ace which was also owed HK$3.25 million and company shareholder Wong Kam Wah who was owed HK$2.5 million. After subscribing for the new shares, Chanceton Capital’s stake in Amax jumps from 0.56% to 2.04%, Skyline Ace from zero to 1.51% and Wong from 5.97% to 6.88%.
Explaining the reasons behind the subscription agreement in a previous filing, Amax said, “The Directors believe that it is in the best interest of the company to extinguish the indebted amount and convert them into capital by way of the subscriptions, in order to alleviate the repayment pressure of the group and to reduce cash outflow from the company.
“The Directors also consider that the subscriptions will enlarge the capital base of the company.”
Amax currently operates a gaming business in Vanuatu under an interactive gaming license as well as a VIP room with 13 baccarat tables at Genting Crown Casino in Poipet Cambodia.
It is also engaged in an ongoing legal stoush with Greek Mythology (Macau) Entertainment Group Corporation Limited – which operated and managed the shuttered Greek Mythology casino at Beijing Imperial Palace Hotel in Macau and of which Amax holds a 24.8% stake – in an effort to gain access to their books and records.
No management accounts of Greek Mythology have been made available to Amax since 31 March 2012. Greek Mythology was closed in December 2015 under order of the DICJ, with the Macau Government Tourism Office subsequently ordering The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was revoked on 12 January 2017.
