Shin Hwa World raises $3.67 million through share subscription agreement

The casino developer behind Jeju Shinhwa World in South Korea, Shin Hwa World Ltd., a Hong Kong-listed company, has announced its intention to raise about HKD28.74 million (US$3.67 million) via a share subscription arrangement. The agreement, which was struck on Wednesday, called for the issuance of 845.25 million additional shares at a subscription share price of HKD0.034.

The company said in a previous statement on March 4 that it plans to utilize around HKD14.0 million of the net revenues for Jeju Shinhwa World’s upkeep, repairs, and upgrades of its current buildings, machinery, and facilities. Furthermore, HKD 10.0 million was reserved for interest payments, and HKD 4.5 million was allocated for expenditures related to sales, marketing, promotion, and advertising.

After the share subscription exercise, the public float of the corporation decreased from 38.14 percent to 31.78 percent. The head of the group, Yang Zhihui, is still the largest individual private shareholder, but his ownership has decreased to 29.21 percent from 35.06 percent. Yang indirectly owns more than 1.48 billion shares via Landing International Ltd., his wholly owned company.

In June, Mr. Yang announced his departure from the board of Shin Hwa World Ltd.

Original story by: GGRAsia