PH Resorts to raise US$11.9m to complete Emerald Bay project
The gaming company PH Resorts has announced it will raise nearly PHP599.2m (US$11.9m) from a subscription transaction involving parent firm Udenna Corp.
The Philippines.- Gaming and hospitality firm PH Resorts Group Holdings has announced the Udenna Corporation will provide 352,441,000 PH Resorts common stocks that it already owns to certain qualified buyers, priced at PHP1.70.
At the same time, Udenna Corp. will subscribe to the same number of shares from PH Resorts at the same price.
The company will raise nearly PHP599.2m (US$11.9m) through the transaction in order to “bring in capital to support the ongoing construction and development of the Emerald Bay resort and casino project.” Any funds left will be used for general company purposes.
If approved by the Philippine bourse, Udenna Corp will reduce its holding in PH Resorts from 86.59 per cent to 82.40 per cent, while the public float in PH Resorts will increase from 13.30 per cent to 17.50 per cent.
Last December, Udenna Corp raised its ownership from 82.28 per cent to 86.59 per cent after PH Resorts Group issued 1,686,309,523 common shares at PHP 1.68 (US$0.034) per share to Udenna Corporation, which paid a total of PHP 2.83bn (US$58.9m) in two instalments.
PH Resorts posts total comprehensive loss of PHP175.5m (US$3.5m) for H1
The casino operator shared its financial results for the first half of the year, revealing a total comprehensive loss of PHP175.5m (US$3.5m). That compares to PHP134.4m in the prior-year period.
The company said the loss was due to the development of Emerald Bay, a beachfront casino resort in Mactan, Cebu, which it expects to officially open in the third quarter of 2022.
The company had originally hoped for a soft launch by the end of this year. That was put back to the third quarter of 2022 due to the impact of the Covid-19 pandemic.
The second phase, which will add more than 700 electronic gaming machines and 146 additional gaming tables, is now slated for completion by 2026.
PH Resorts reported that its liabilities exceeded its assets by nearly PHP7.29bn as of June 30. It pledged to spend a minimum of US$300m on the Emerald Bay development as part of the deal with the PAGCOR to obtain a gaming licence.
