Melco Resorts offers share options at lower exercise price

Global casino operator Melco Resorts and Entertainment Ltd has created a voluntary scheme for those entitled to its share options, whereby they can swap their existing rights for options with a lower exercise price, and have their existing options cancelled.

Melco Resorts said in a Friday filing in the United States, that the reason for the offer was “as a result of a general decline in the price of our American depositary shares in recent years, all of our outstanding options have exercise prices substantially higher than the current and recent trading prices”.

The company – led by Lawrence Ho Yau Lung – runs casinos in Macau, the Philippines and the Republic of Cyprus.

The firm said that as of April 6, the closing price of one American depositary share on the Nasdaq Select Market was US$7.40, which was equivalent to US$2.4667 per share.

The exercise price of the new options – available to eligible staff and other eligible people linked to the company – will be US$2.4667.

The American depository shares of the firm were trading at US$6.85 on Friday, versus US$19.95 on April 12 last year, according to Nasdaq data.

Source: https://www.ggrasia.com/melco-resorts-offers-share-options-at-lower-exercise-price/