Hong Kong listed Imperial Pacific International (IPI) says it is looking to raise HK$46 million through the placement of convertible bonds in order to complete Phase 1 of its Imperial Pacific Resort project in Saipan.
In a filing to the Hong Kong Stock Exchange, IPI declared an initial conversion price of HK$0.176 per share representing a premium of 36.43% over Friday’s closing price of HK$0.129 per share.
“The net proceeds of the placing of approximately HK$46 million will be applied towards Phase 1 of the Saipan Project and the general working capital of the Group,” it said.
The Convertible Bonds will carry a coupon interest of 4% per annum, payable semi-annually on 30 June and 31 December, with any outstanding convertible bonds not redeemed, repurchased and cancelled or converted by the maturity date (two years after date of issue) to be redeemed at 102% of the principal amount.
IPI said that, “The Directors consider raising funds by issuing Convertible Bonds is justifiable which represent an opportunity for the Company to enhance its working capital and strengthen its capital base and financial position. The Directors consider that the issue of the Convertible Bonds is an appropriate means of raising additional capital for the Company since it will not have an immediate dilution effect on the shareholding of the existing Shareholders.”
Originally scheduled to open in March 2017, Imperial Pacific Resort has endured a number of construction delays and was recently given a 16-month extension on its construction deadline.
The company has also been told to address various safety concerns around the property before it can begin casino operations.
RelatedPosts
