Shinhwa Capital Reg as of June 17

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Hong Kong-listed casino developer Xinhua World Inc said at a special general meeting on Thursday that the group's recapitalisation would take effect on Monday (June 17) after shareholders agreed to a deal. 경마사이트프로

"The [Hong Kong] Stock Exchange's adjusted trading of shares will begin on Monday, June 17, 2024 at 9:00 am," it said in a filing on Thursday.

The issuance of rights proposed by the company, which aims to raise about HK$393.3 million ($39.5 million), was also approved by shareholders.

Shinhwa World Co., Ltd. is the promoter of Jeju Shinhwa World (photo), a complex with foreigner-only casinos in Jeju, Korea.

The group's capital reorganization announced in April includes a consolidation of shares "with HK$0.01 for every 10 existing shares consolidated into HK$1 each."

Subsequently, there will be a reduction in the capitalization of each shareholder's outstanding shares "to the nearest total by canceling a portion of the consolidated shares," and all credit arising from the exercise will be transferred to the company's "surplus account."

Xinhua World expects the potato to make a surplus of about HK$405.6 million based on just over 5.07 billion shares issued.

When capital reorganization and equity consolidation are implemented on Monday, the casino company will implement rights issuance at a subscription price of HK$0.26 per share of rights based on two rights shares for each adjusted share held on the record date.

The company said it expects to raise up to HK$263.7 million before expenses by issuing rights shares of up to HK$1.01 billion. It is estimated to have a net profit of HK$258.6 million, according to the filing.

SR Wealth Securities Ltd, listed as an independent third party, has been identified as an underwriter in connection with the rights holder.

Xinhua World Inc said in a previous filing that around HK$100 million of its expected net profit from the rights issue would be "used to maintain, repair and upgrade Jeju Xinhua World's facilities".

About HK$73 million will be converted into channels "such as enhanced services, supply chain management, human resource development and sales and marketing activities" for the development of the group's resort and gaming business, the company said.

The company reported a consolidated net loss of HK$522.4 million for 2023 with revenue of less than HK$1.04 billion, down 25.3% year-over-year.