{"id":7830,"date":"2020-07-05T15:57:51","date_gmt":"2020-07-05T15:57:51","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=7830"},"modified":"2026-04-24T03:54:46","modified_gmt":"2026-04-24T06:54:46","slug":"donaco-to-raise-us9-9m-in-working-capital","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/donaco-to-raise-us9-9m-in-working-capital","title":{"rendered":"Donaco to raise US$9.9m in working capital"},"content":{"rendered":"\n

Directors have decided capital is urgently needed to cope with the impact of Covid-19 and travel restrictions on gaming revenue.<\/p>\n\n\n\n\n\n\n\n

Australia.- Casino and club operator Donaco International Limited has announced it will raise its equity to seek around AU$14.41 million (US$9.9 million) in working capital.<\/p>\n\n\n\n

The recent US$5 million loan deferral<\/a><\/em><\/strong> from its largest lender, Mega International Commercial Bank, from March to December was not enough to rescue the operator’s balance sheet.<\/p>\n\n\n\n

Donaco\u2019s directors determined the firm was \u201cin urgent need of capital as a result of the impact of COVID-19\u201d on gaming revenues, and that an entitlement offer was needed.<\/p>\n\n\n\n

Non-Executive Chairman Mel Ashton said: \u201cThe funding aligned with Donaco’s key objectives of limiting debt, preserving shareholder value and providing immediate financial stability for the company.<\/p>\n\n\n\n

“COVID-19 travel restrictions, the consequent closing of international borders, and the closure of casinos in Vietnam<\/a><\/em><\/strong> and Cambodia (with the casino in Vietnam now partially operational), has significantly impacted the financial position of the company. This capital injection will enable us to stabilise our immediate financial needs, and meet the upcoming repayment requirements on our borrowings.”<\/p>\n\n\n\n

The entitlement offer at a price of $0.035 per new share is fully underwritten by Lee Bug Huy and Lee Bug Tong, who own almost 18 per cent of the company\u2019s shares.<\/p>\n\n\n\n

Once underwriting is complete, Lee Bug Huy and Paul Porntat Amatavivadhana will be appointed as non-executive directors. Mel Ashton and Simon Vertullo plan to retire from their positions.<\/p>\n\n\n\n

The company has said it is currently looking new additional directors to complete the board.<\/p>\n","protected":false},"excerpt":{"rendered":"

Directors have decided capital is urgently needed to cope with the impact of Covid-19 and travel restrictions on gaming revenue.<\/p>\n","protected":false},"author":2,"featured_media":7832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Donaco International Limited is undertaking an AU$14.41 million equity raise via an entitlement offer to secure urgent working capital. This capital injection is necessitated by the severe impact of COVID-19 travel restrictions and casino closures on GGR in Vietnam and Cambodia, aiming to stabilize immediate financial needs and meet debt obligations. The offer is fully underwritten by major shareholders, coinciding with significant board governance changes.","focusai_entities":"Donaco International Limited, Mega International Commercial Bank, Mel Ashton, Lee Bug Huy, Lee Bug Tong, Paul Porntat Amatavivadhana, Simon Vertullo","focusai_location":"Australia, Vietnam, Cambodia","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.8)","focusai_suggestions":[{"label":"Capital Allocation Strategy","query":"Beyond immediate debt servicing, how will this capital injection be strategically allocated to enhance Donaco's operational resilience and potentially diversify its gaming verticals or market presence?"},{"label":"Governance & Market Outlook","query":"What specific strategic directives are anticipated from the new non-executive directors to address long-term GGR recovery and market positioning, particularly concerning potential B2B or B2C licensing expansions?"}],"footnotes":""},"categories":[16336,163],"tags":[289,966],"class_list":["post-7830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australasia-news","category-finance-news","tag-australia","tag-donaco"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/7830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=7830"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/7830\/revisions"}],"predecessor-version":[{"id":7854,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/7830\/revisions\/7854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/7832"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=7830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=7830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=7830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}