Shin Hwa World announces share issuance to raise funds for Jeju revamp
It aims to issue 845.25 million new shares to fund upgrades and maintenance at Jeju Shinhwa World.
South Korea.- Shin Hwa World Limited has entered into a subscription agreement, conditionally agreeing to allot and issue 845,250,000 subscription shares at HK$0.034 per share. It expects to collect approximately HK$28.5m (US$3.6m) in net proceeds.
The proceeds from the subscription will be used to upgrade, repair and maintain the existing building, equipment and facilities of Jeju Shinhwa World (approximately HK$14m), to pay off interest expenses (HK$10m), for sales and marketing (HK$4.5m) and general working capital.
In its latest financial update, Shin Hwa World issued a profit warning for the fiscal year 2023, anticipating a loss ranging between HK$450m (US$57.5m) and HK$540m (US$69m). The company attributed the increase in losses to a decrease in revenue in its integrated resort development segment due to lower room prices and occupancy rates, which resulted from intense competition and domestic customers travelling abroad after the easing of travel restrictions.
