Genting claims that this is meant as working capital a well as for financing purposes
This year, in March, Genting Malaysia spent $40 million US on subscribing Empire Resorts stocks.
After half a year Genting Malaysia announced that it will inject another $150 million US into Empire Resorts, which is losing money, by subscribing preferred shares. Genting Malaysia pointed out in the announcement that it has signed a new subscription agreement with Empire Resort for buying a series of priority rights for companies listed stock on the Nasdaq.
This fund will be used for operating capital and financing purposes. Genting Malaysia pointed out that the deadline for the preferred stock is December 31, 2038, and it can also be converted into ordinary shares at a conversion price of US$10 per ordinary share.
Due to the impact of the COVID-19, the Empire Resort Center urgently needs working capital to repay its short-term debt and resume its operations in Resorts World Catskills
The good news is that Resorts World Catskills has resumed operations on September 9th. Originally the Empire Resort wanted to issued 475 million US in bonds in July, but due to the public health crisis, the bond issuance plan was forced to suspended.
At present, Genting Malaysia currently holds 49% of the shares in Imperial Resorts. Assuming that Genting Malaysia will fully convert preferred shares into ordinary shares, its shareholding will reach 57% in 2030.
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