Donaco completes entitlement offer for US$9.9m

The proceeds will go to repay its main lender and to make up for the lower gaming revenues at its Cambodia and Vietnam casinos.

Australia.- Casino and club operator Donaco International has completed an entitlement offer of new ordinary shares for AU$14.41million (US$9.9 million).

The company announced at the beginning of July it was planning to raise its equity to raise necessary capital to face the economic impact of the Covid-19 pandemic, particularly the effect on gaming revenue at its Vietnam and Cambodia casinos.

The offer was placed on the basis of one new share for every two existing shares, at a price of $0.035 per unit. The company said in a filing that a total of 411,796,609 new shares were offered.

The firm said: “The entitlement offer is fully underwritten, and post the completion of the entitlement offer and associated shortfall take-up, the company will raise approximately AU$14.41million before costs.”

The underwriters were Lee Bug Huy and Lee Bug Tong, who increase their participation in Donaco International from 17.99 per cent to 42.12 per cent.

Donaco said that to cope with lower gaming revenue it had also been working with key suppliers and had managed to get a deferral from its main lender, Mega International Commercial Bank Co.

Proceeds from the entitlement offer will go to meet the repayment of the debt facility with Mega Bank, in addition to working capital purposes in relation to the casinos in Vietnam and Cambodia.