The parent company of Newport World Resorts, Alliance Global Group (AGI), has announced that it has raised PHP1.1 billion ($18.71 million) from the sale of stock warrants, to further expand its integrated resort developments.
According to Philstar, AGI’s president and CEO Kevin Tan said that the warrants offer acts as a statement of confidence in the company’s future business, as well as in the Philippine capital markets.
Warrants are financial instruments allowing investors the right to purchase company shares at a fixed price during a set period.
The company announced the warrants sale early last month, with each warrant placed at PHP0.50 ($0.085), allowing shareholders to purchase one AGI share later at PHP12 ($0.20) within the next five years. Each investor is entitled to one warrant for every four AGI shares they currently own.
Speaking of the issuance, the company’s CEO noted that “This will help provide us with the flexibility to strengthen our leadership in each of our core businesses”.
The executive furthered: “this new milestone will significantly benefit our investments through Newport World Resorts as we continue to redefine leisure and entertainment in the Philippines”.
Aside from upgrades to Newport, the capital raised is expected to be used for its Westside City development, Mactan Newtown property in Lapu-Lapu City, and its Boracay Newcoast integrated tourism township.
Alliance assumed majority control of the Westside City project in September, via its majority holding in Westside Bayshore Holding Corporation (WBHC), after initial developer Suntrust lowered its stake in the project.
“This listing is about building a future where we can continue to grow and lead with purpose. It reflects our belief that sustainable success comes from continuous innovation, from partnering with the right institutions and growing businesses that uplift communities and contribute to nation building,” noted Tan of the warrants issue.
