Shareholders of troubled Philippines gaming investor PH Resorts Group have approved a proposal to almost double the company’s authorized capital stock as it seeks to raise funds towards its stalled integrated resort development in Cebu.
In a filing, PH Resorts Group – the gaming and hospitality arm of Dennis Uy’s Udenna Group – said the proposal to increase stock from 8 billion to 15 billion, divided into 15 billion common shares, was given the green light at a shareholder’s meeting on Wednesday.
They also granted the Board of Directors the authority to issue shares from the increased capital stock at any volume and price they determine and to accept “cash or non-cash properties” as payment. These shares may be issued by way of equity offering, private placement, top-up placement or similar transaction.
The company had wanted to sell off some if its existing assets as an additional means of raising funds but was denied adding this as an agenda item for Wednesday’s meeting after failing to include it on the original agenda submitted in May.
The latest developments come after Bloomberry Resorts Corp, owner and operator of Manila’s Solaire Resort Entertainment City, terminated in March a proposed cash injection which would have seen it acquire a substantial share in PH Resorts Group’s Cebu IR development, The Emerald Bay, and another stalled project known as The Base Resort Hotel and Casino in Clark.
PH Resorts Group claimed in May to have since initiated discussions with “numerous” other parties over a potential investment that would allow it to resume development of The Emerald Bay. It also revealed ongoing negotiations with lenders, primarily Land Bank of the Philippines (Landbank), after the company’s auditor made note in its Annual Report that “a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.”
PH Resorts Group fell to a total comprehensive loss of Php801.9 million (US$14.5 million) in 2022 following a Php 153.0 million (US$2.8 million) loss in 2021.
Phase 1 of The Emerald Bay had originally been scheduled for completion in 2022 but stalled due to the company’s funding issues. If it does reach completion, the initial phase is planned to include 122 gaming tables, 600 electronic gaming machines (EGM) and 270 hotel rooms, among other attractions.
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