Hong Kong-listed casino developer Shin Hwa World announced that its capital reorganization will take effect on Monday, June 17th, following approval by shareholders at a special general meeting held on June 13th.
Shareholders have also approved the company’s proposed rights issue, aiming to raise approximately HK$309.3 million ($39.5 million).
Shin Hwa World is the developer behind Jeju Shinhwa World, a complex featuring a foreigner-only casino located in Jeju, South Korea.
In April, the group announced a capital reorganization plan that includes a share consolidation, where every 10 existing shares valued at HK$0.01 each will be consolidated into one share valued at HK$0.10.
Following this, there will be a capital reduction, whereby each shareholder’s issued share capital will be adjusted to the nearest whole number by canceling any fractional shares. Any resulting credits will be transferred to the company’s ‘surplus account’.
With approximately 5.07 billion existing shares in circulation, Shin Hwa World anticipates generating a surplus of about HK$45.6 million ($5.84 million) from the capital reduction.
Following the effective date of the capital reorganization and share consolidation on June 17th, the casino firm will proceed with a rights issue. Shareholders will receive two rights shares for every adjusted share held on the record date, with each rights share priced at HKD0.26.
The company aims to raise up to HK$263.7 million ($33.8 million) before expenses through the issuance of up to 1.01 billion rights shares. Net proceeds are anticipated to reach HKD258.6 million ($33.1 million), as indicated in the filing.
