Jeju Shinhwa World plans to raise HK$309.3m.<\/p>\n\n\n\n\n\n\n\n
South Korea.-\u00a0Shin Hwa World Limited<\/strong>, the former\u00a0Landing International Development<\/a>,\u00a0<\/strong>has announced a capital\u00a0reorganisation\u00a0and follow-up rights issue, aiming to raise about HK$309.3m (US$39.5m). The company will consolidate every ten shares worth HK$0.01 into one share worth HK$0.10. It will reduce the share capital of each shareholder to the nearest whole number and transfer any remaining credits to the company’s surplus account.\u00a0<\/p>\n\n\n\n The company expects to generate a surplus of HK$45.6m based on the approximately 5.07bn existing shares.\u00a0Once the capital\u00a0reorganisation\u00a0and share consolidation are effective, the company plans to implement a rights issue offering two rights shares for every one adjusted share<\/strong>\u00a0at a subscription price of HK$0.26 per rights share.\u00a0<\/p>\n\n\n\n The company expects the rights issue will provide an opportunity to strengthen its financial position, relieve its\u00a0financial\u00a0burden, and provide working capital without adding interest.\u00a0Shin Hwa World\u00a0said it intends to use approximately HK$100m of the estimated net proceeds for maintenance, renovation and upgrade of facilities in Jeju Shinhwa World, including but not limited to a water supply construction for the development of the casino venue.<\/p>\n\n\n\n Approximately HK$73m will\u00a0be used\u00a0for the development of\u00a0the Resort Business and Gaming Business of the Group\u00a0such\u00a0as service enhancement, supply chain management, human resources development\u00a0as\u00a0well as\u00a0sales and marketing activities.\u00a0In addition, HK$50m will be used for interest expenses\u00a0while\u00a0the remaining HK$35.6m will\u00a0be used\u00a0for general working capital of the company\u00a0such\u00a0as staff costs, utilities expenses and other general operating expenses.\u00a0<\/p>\n\n\n\n In March, the company raised HK$28.74m (US$3.67m)<\/a> through a share subscription agreement. It issued 845.25 million subscription shares<\/a> at HK$0.034 per share.<\/p>\n\n\n\n