LRWC to Raise Up to Php1.85 Billion Through Private Placement
December 16, 2022
13 December 2022, MANILA, PHILIPPINES – Leisure & Resorts World Corporation (LRWC), through its Special Stockholders’ Meeting held on November 24, 2022, obtained from the supermajority of its stockholders the approval of the issuance of 691,200,000 common shares for a new round of private placement fund raising.
The approved subscription amount for LRWC’s most recent private placement is Php1.70 or 5% premium over its 30-trading day Volume Weighted Average Price (VWAP) per share, whichever is higher. The Company had witnessed rapid growth since the launch of BingoPlus, which is a factor on the increase of its stock value as well. With the improved performance, LRWC’s stock price is reported to have a VWAP of Php2.55 according to the Philippine Stock Exchange’s calculation. A 5% premium over the VWAP would be Php2.68. Considering the number of common shares approved for this issuance, LRWC expects to raise up to Php1.85 billion.
During its Special Stockholders’ Meeting, the Company mentioned that the purpose of another private placement is to further strengthen its technological platforms, to develop better products and services, and to support expansion of the Company’s businesses; hence, it anticipates the need to have more ready capital to support the cost of operational and capital expenditures.
The Company reported total revenues of Php2.9 billion in the third quarter which shows an increase of 491% YoY as compared to 2021’s Php486 million. The increase was mainly from bingo games, electronic games, and the casino businesses of the Company. While there was slight decrease in the network and licensing sector, it did not have a significant impact on the Company’s overall performance.
Additionally, LRWC’s third quarter EBITDA shows a robust growth of 602% from last year’s loss of Php111 million to a positive Php560 million. Most notable of all, the Company achieved its first positive net income of Php172 million for the three quarters ended September 30 since the pandemic swept up the world’s economy. Third quarter of 2022 resulted in a Php429 million net income as compared to the previous year’s net loss of Php107 million.
The figures for the three quarters this year align with the investment and business strategies that the Company’s Management had outlined. The Company will continue to build on that momentum and invest heavily on technology and new products to support future growth opportunities. “We will continue to strive for improvement and maximize returns for our stakeholders.” said LRWC President, Andy Tsui.
Caution regarding forward-looking statements
The forward-looking statements in this press release are based on the beliefs of the management as well as assumptions made by and information currently available to the management. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the rate and pace of economic recovery following economic downturns, levels of spending in business and leisure segments as well as consumer confidence. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements; no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.