Leisure & Resorts World Corp (LRWC) says it has approved the issuance of 691.2 million common shares in the company to three investors as part of its plan to increase its authorized capital stock by some 40%.
The Philippines gaming conglomerate will hold a shareholders’ meeting on 24 November to vote on the proposal to increase its capital stock and if approved will submit its application to the SEC. It will then look to issue 691.2 million shares to three investment holdings firms – named as Clearspring Holdings Corporation; Belvedere Skies Asset Holding Opc; and Tucket Holdings, Inc – as the first allocation of its newly created shares.
The issue price will be Php1.70, suggesting a total benefit to LRWC of Php1.18 billion (US$20 million).
Outlining the reasons for the placing in a Tuesday filing, LRWC said, “To further expand the business operation in anticipation of the opening of the Philippine market, 100% of the proceeds will be spent for company projects such as upgrades and expansion of operation sites, sportsbook and technology development.”
The process is expected to take up to six months from the time of filing, it added.
LRWC’s interests include the leasing of slot machines and operation of slot arcades on behalf of PAGCOR, while last September it was granted accreditation from PAGCOR to launch a new retail and online sportsbook for local users – the third such company to receive online sports betting accreditation alongside MegaSportsWorld and Jade SportsBet.Another product, BingoPlus, became the first online traditional bingo game to be licensed by gaming regulator PAGCOR when launched in February.
LRWC has previously outlined plans to build a casino resort on Boracay, possibly in cooperation with Macau’s Galaxy Entertainment Group, although it is unclear whether this project will proceed.
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