Donaco International to raise $14 million in equity. Donaco International Ltd announced plans to raise US$ 14.4 million in equity by way of a completely underwritten pro rata non-entitlement bid.
The offer, which enables one new share for every two existing shares, is underwritten by Thai vendors of Donaco’s Star Vegas casino in Poipet, Lee Bug Huy and Lee Bug Tong, who hold a 17.99% stake in the company.
Donaco said the new board “has determined that the company is in urgent need of capital as a result of the impact of COVID-19 on the company’s gaming operations and the requirement to make repayments under the company’s debt facilities with Mega Bank.”
“In the circumstances, the company has decided to proceed with the entitlement offer providing eligible shareholders with an opportunity to invest in the company while sneering funding certainty by having the entitlement offer fully underwritten by the underwriters.”
As part of the fund raising plan, Chairman Mel Ashton and non-executive director Simon Vertullo will step down from the board following completion of the offer, with Huy and Mr Paul Amatavivadhana to replace them.
[image: Wallpaper Access]