Analysts believe the Philippines will become a major player as the gaming market across the Asian region continues to change.
Against this backdrop, gaming investor PH Resorts Group is desperately seeking new backers for Cebu's Emerald Bay Resort, and it looks like they are making headway.
The company previously had contracts with Bloomberry Resorts for two projects, Cebu Island and Clark Freeport Zone.But the gaming hospitality giant, owned by billionaire Enrique Razon Jr., decided to pull out in March after nearly a year of negotiating terms.
It was just a temporary setback for PH Resorts. PH Resorts has two initiatives underway in the Philippines that it believes will bring great results and keep moving forward.
Considering the sale of shares
PH Resort is a subsidiary of the Udena Group, a conglomerate of Philippine companies dealing in oil, logistics, telecommunications, gaming, and more.Despite its ties to a multi-billion dollar business, it's not doing very well.The company's shares, which trade on the Philippine Stock Exchange, have fallen more than 1% over the past year.
Shareholders agreed to add more shares on Wednesday in the wake of the recovery, the company said in a statement. PH Resorts will increase its available capital by almost 100% and the new funds will be injected into Cebu's integrated resorts.
In effect, there will be 80 billion shares on the market instead of 150 billion.The Board may issue shares in any manner and at any price it sees fit.The announcement shows that "cash and non-cash assets" are valid payment methods.
PH Resort had also proposed selling some of its assets to raise capital.The idea was first put forward in May of this year.But it wasn't on the agenda for Wednesday's meeting.Therefore, the proposal is not currently on the agenda.
The need for cash comes after the company has posted losses for several years in a row. It posted a loss of $2021 million in 280 and $2022 million in 1450.This led to delays in the Emerald Bay project, exacerbated by Bloomberry's withdrawal.
Negotiations with investors
At the same time that shareholders approved the IPO, PH Resorts was moving to secure investment funds through other means.The Manila Standard newspaper reported Wednesday that the company is in the "final stages" of several potential deals.
Dennis Ui, chairman of PH Resorts, is working with "one foreign investor and one local investor" for Emerald Bay.Details are unknown, but PH Resorts said it will "announce details as soon as possible."
Once completed, the resort will reportedly offer 780 rooms and five villas, a casino with 5 electronic slots and 729 gaming tables.The project missed the 146 start date due to financial difficulties.
The Clark Freeport Zone resort, Base Resort Hotel and Casino, is on hold and PH Resorts is fully committed to Cebu.The company officially halted development of the facility in 2021 after asking the Philippine government to suspend the project's license.
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