LRWC ISSUED PRIVATE PLACEMENT TO RAISE CAPITAL | Marvin Germo

LRWC ISSUED PRIVATE PLACEMENT TO RAISE CAPITAL

By: Marvin Germo | March 27, 2019

Private Placement Available For Investors

Good news for LRWC investors! The Leisure & Resorts World Corporation (LRWC) has just recently approved to issue private placements worth P4.38 billion in order to raise fresh capital to be used in their present and future operations. This will stocks, bonds, or securities to be sold to private investors rather than making it a part of the public offering. The known gaming firm confirmed that this private placement is equal to 1.22 million common shares which will be taken out from its unissued capital stock.

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Stock Smarts Cebu —  April 6 & 7, 2019
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Private Investors Who Were Issued The Private Placement 

The 1.22 billion common shares are priced at P3.60 per share. If you can observe, the price represents a premium over its closing price last year, November 2018, which was at P3.30. The private investors who were issued the placement include Diamond Fortune Holdings, Inc., Fortunegate Holdings Philippines, Inc., XII Capital Inc., and Millennium Pan Asia Business Management Services, Inc. Who took 230 million share each. The 176.65 million shares were issued to Leisure Advantage, Inc. while 121 million shares went to Euphonious Holdings, Inc.

Purpose of Issuing The Private Placement

Among the said private investors, Diamond Fortune, Fortunegate Holdings, and Millennium Pan Asia are eyeing on casino operations locally and internationally. To raise a fresh capital of P4.38 billion is easier for the firm with the help of the issuance of the private placement. The fund will be used pay for its existing debts and general purposes for its corporate operations. To add, the company is planning to establish an integrated resort worth $550-million to be located in Boracay. Galaxy Entertainment Group, the casino monster in Macau, is going to be a partner of the said project.

LRWC’s Net Income

Though the revenue growth of the firm stayed flat at 1% or P7.42 billion in 2018, its net income attributable to parent decreased by 27% or equivalent to P266.04 million. Considering its plan to build an integrated resort project which is targeted to open by 2021 in Boracay, the company is optimistic about its outlook in the coming years. The target market of the new project, who are travelers and Chinese tourists, will be a big help on the future success of the firm taking into account that it will incorporate casino in the resort. On March 26, LRWC closed at P3.87 each.

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