Shin Hwa World Wants to Raise $39 Million to Improve the Jeju Integrated Resort

Details: Category: Gambling Industry; Created: Friday, 19 April 2024 07:06

Shin Hwa World Ltd has unveiled a strategic plan to reorganize its capital, which is expected to enhance its financial structure. Additionally, the company aims to raise approximately $39 million to bolster the staffing and facilities of its Jeju Shinhwa World. This initiative includes a share consolidation, where every ten shares of HK$0.01 will merge into a HK$0.10 share, a step that will streamline the company's share structure and potentially increase shareholder value.

There will be a capital reduction where the shareholders’ issued share capital will be rounded to the nearest whole number. As a result, fractions within consolidated shares are canceled. The surplus will be part of the firm’s account.

According to PPH sportsbook reports, Shin Hwa World predicted a surplus of about $5.8 million due to this move.

Shin Hwa World to Improve the Jeju Integrated Resort

The firm has announced its intention to conduct a rights issue, with the conversion of each Adjusted Share held on the record date into two Rights Shares. The target is to raise $33.7 million before expenditures or $33.0 million after expenses, depending on how the capital restructuring and share consolidation play out.

According to a sports betting software company, Shin Hwa World has earmarked $12.8 million to enhance Jeju Shinhwa World. This investment will be utilized for various purposes, including the maintenance, renovation, and upgrade of facilities and the construction of a water supply system. These initiatives aim to improve the overall guest experience and attract more visitors to the resort.

An additional $9.3 million is set aside for the "development of the Resort Business and Gaming Business of the Group, such as service enhancement, supply chain management, human resources development, and sales and marketing activities. In addition, the company earmarked $6.4 million for interest expense and $4.5 million for the company's general working capital.

According to SportsbookSOS.com sources, Shin Hwa World has announced a $67 million loss for 2023. The company attributed this to what it described as fierce competition in the hotel industry, local consumers traveling overseas following the loosening of global travel restrictions and pressure on room prices and occupancy rates.

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