Macau Legend said its board has approved a proposed capital reorganization aimed at strengthening the company’s balance sheet and paving the way for a rights issue.
The plan, conditional on the firm’s change of domicile to Bermuda, will reduce the nominal value of each issued share from HK$1 ($0.13) to HK$0.01 ($0.0013) through a capital reduction. The move cancels HK$0.99 ($0.13) of paid-up capital per share, with the credit transferred to the contributed surplus account under Bermuda law.
Following the reduction, authorized but unissued shares of HK$1 ($0.13) will be subdivided into 100 new shares of HK$0.01 ($0.0013) each. The surplus account will then be applied to offset accumulated losses, subject to legal requirements and the company’s bye-laws.
As of the latest practicable date, Macau Legend’s authorized share capital stood at HK$1 billion ($130 million), divided into one billion shares.
After the reorganization, the authorized capital will remain HK$1 million ($130 million) but represented by 100 billion shares of HK$0.01 ($0.0013) each. Issued capital will fall from HK$620.1 million ($80.6 million) to HK$6.2 million ($806.154), though the number of issued shares will remain unchanged at 620,118,712.
The board said the restructuring will not materially affect the group’s net asset value, operations or shareholder interests, aside from professional fees and related expenses. Directors must also confirm that the company can meet its liabilities on the effective date, set for December 29th, 2025.
Macau Legend, which reported tightened cash flow and rising operational pressures in its 2025 interim report, said the reorganization is necessary to meet the Cayman Islands’ legal requirements for its planned rights issue. The fundraising is intended to bolster liquidity, sustain core operations and provide flexibility for future initiatives.
Macau Legend, which used to run the Legend Palace casino under a services agreement with SJM Holdings and still operates the waterfront Fisherman’s Wharf complex, has been grappling with heavy losses.
The firm reported a net loss of HK$1.42 billion ($182.7 million) in the first half of 2025, after a HK$622 million ($80 million) loss last year.
