South Korean integrated resort operator Shin Hwa World Limited announced the successful completion of its share placement under a general mandate, raising approximately HK$35.4 million ($4.5 million) in net proceeds.
According to the company, a total of 304.29 million new shares were placed to at least six independent investors at a price of HK$0.118 ($0.015) per share. The placement was completed on July 15th, following the fulfillment of all conditions under the placing agreement signed last month.
Shin Hwa World operates Jeju Shinhwa World, including the Landing Casino.
The new shares represent around 20 percent of Shin Hwa World’s issued share capital prior to the placement and approximately 16.67 percent of the enlarged share capital post-placement. The company said all investors are third parties independent of Shin Hwa World and its connected persons, with none of the investors having become a substantial shareholder as a result of the transaction.
The net proceeds from the placement, after deducting commissions and related expenses, are expected to amount to approximately HK$35.4 million ($4.5 million).
Shin Hwa World plans to allocate HK$13 million ($1.65 million) of this amount to cover bank interest expenses. Around HK$6 million ($750K) will be used to upgrade its information systems and other operational technologies.
The company will spend approximately HK$5 million ($625K) on sales and marketing efforts, including gaming tournaments and advertising campaigns. The remaining HK$11.4 million ($1.4 million) will go towards general operating expenses such as staff salaries, supplies, equipment, and professional service fees.
The company expects to fully utilize the proceeds by the end of September 2025. Following the issuance of the new shares, the company’s total issued share capital increased from approximately 1.52 billion to 1.83 billion shares.
Key shareholders after the changes now include Pauline Lam, who holds about 14.97 percent of the company’s shares through Wealth Millennium Limited and direct ownership; Zhang Tingting, who owns 13.89 percent via Resplendence Investment Development Limited; while new investors collectively hold 16.67 percent, with other public shareholders now accounting for 54.48 percent, down from 65.37 percent.
