Landing International Development Ltd is expecting to raise net proceeds of around HK$137.2 million from the placement of new shares in order to provide working capital for its integrated resort, Jeju Shinhwa World, in Jeju, South Korea.
The placing, announced on Monday, will see Landing increase the company’s issued share capital by 20% via the placement of 586,979,742 shares at a price of HK$0.235 each.
The Placing Shares are to be placed to not less than six placees whose owners must be independent third parties.
Explaining the reasons for increasing its issued share capital, Landing said, “the Placing will strengthen the Group’s financial position and widen the Company’s shareholder base.”
The placement comes as Landing announced its FY19 financial results, which saw the company’s loss widen considerably to HK$2.13 billion from a loss of HK$701.5 million in 2018.
The losses were primarily due to an 85.7% fall in revenue from Landing Casino, located at Jeju Shinhwa World, to HK$213.1 million. Segment loss from the gaming business was HK$469.0 million compared with a profit of HK$83.0 million in 2018.
Addressing the losses, Landing said its casino plans to “regularly organize regional and global poker and baccarat gaming tournaments as part of its ongoing efforts to promote and position Jeju Shinhwa World as a desirable destination resort.
“Marketing promotions, events, reward scheme, competitive mass and VIP gaming programs will launch continuously to energize the business in the future.”