Asian gaming investor Amax International has entered into agreements with two of its individual investors, Mr Wong Kam Wah and Ms Cheng Wai Man, that will see them issued with additional share capital in the company in lieu of a HK$14 million repayment obligation for promissory notes.
The notes were issued on 18 October 2017 following the completion by Amax of a 100% acquisition of technology solutions and AR/VR platform developer Explicitly Grand Investments Limited, with a due date of 18 October 2019.
However, with the company continuing to face financial pressures, it revealed in a Tuesday filing that it has negotiated a new agreement with both Wong and Cheng that will see them granted additional shares, with Amax increasing its issued share capital.
Wong currently holds 61,330,000 shares in Amax representing around 5.79% of total issued share capital but will see that increase to 8.73%, while Cheng will see her holding grow from 5.79% to 7.49%. Amax Chairman and CEO Ng Man Sun, who only recently upped his personal holding three-fold, will see his stake fall from 21.30% to 20.48% with other public shareholdings to drop from 65.84% to 63.30%.
“The directors consider that the loan capitalization will allow the company to early settle the promissory notes without utilizing existing financial resources of the company while reducing the gearing level of the group and hence strengthening the financial position of the group,” the company said in its filing.
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.
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