Hong Kong-listed gaming investor Amax International Holdings Ltd has entered into a subscription agreement with three creditors that will see it issue a total of almost 37.2 million subscription shares in order to waive HK$9 million in debt.
The subscription shares represent 4.35% of the issued share capital of the company.
According to Amax, the creditors include a long-term financial advisory firm, Chanceton Capital, to which it owes HK$3.25 million, a company shareholder named Mr Wong who is owed HK$2.5 million and business consultant Skyline Ace, also owed HK$3.25 million.
Under the terms of the subscription agreement, Chanceton Capital will subscribe for 13,429,000 shares, Mr Wong will subscribe for 10,330,000 shares and Skyline Ace will subscribe for 13,429,000 shares – all at a price of HK$0.242.
The aggregate nominal value of the subscription shares is HK$7,437,600.
Explaining the reasons behind the subscription agreement, Amax said, “The Directors believe that it is in the best interest of the company to extinguish the indebted amount and convert them into capital by way of the subscriptions, in order to alleviate the repayment pressure of the group and to reduce cash outflow from the company.
“The Directors also consider that the subscriptions will enlarge the capital base of the company.”
Amax currently operates a gaming business in Vanuatu under an interactive gaming license as well as a VIP room with 13 baccarat tables at Genting Crown Casino in Poipet Cambodia.
It is also engaged in an ongoing legal stoush with Greek Mythology (Macau) Entertainment Group Corporation Limited – which operated and managed the shuttered Greek Mythology casino at Beijing Imperial Palace Hotel in Macau and of which Amax holds a 24.8% stake – in an effort to gain access to their books and records.
No management accounts of Greek Mythology have been made available to Amax since 31 March 2012. Greek Mythology was closed in December 2015 under order of the DICJ, with the Macau Government Tourism Office subsequently ordering The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was revoked on 12 January 2017.
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