PH Resorts Group Holdings Inc. was confirmed to start a project worth $350 million. The project was to build two elaborate resort casinos in the Philippines. Although, the Philippines security and exchange commission permitted the company to begin the project and the capital-raising, the project seems to be in a peril.
The company, in a press release issued on Friday, confirmed that it would be searching for better options for raising the capital. It asserted that they were looking for the alternative options that were more strategically appropriate.
With the approval from SEC to begin the funding, the company intended to sell 1.79 billion common stocks. It still had an additional 268 million, for future needs. They also reached China Banking Corporation to endorse the offer.
Things started moving smoothly soon after PHR increased its capital stock from 500 million common shares to 800 billion. This action was approved by SEC back in December when PHR held 4.5 billion of the shares by themselves. Consequently, the company changed its name from Philippines H2O ventures to PH Resorts Group.
Dennis Uy purchased 62% of the stocks in PHR, leading to the rebranding of the company.
The prices of the stock were kept between 3.65 Php to 5.84 per share so that it could fund the completion of the project.
However, the capital raised will now be relocated to fund the development at the Donatela Hotel in Panglao. The remainder will be used for general corporate purposes.
The company still asserts that the project is not dead yet and that it would be accomplished and functioning.
Although, the company still has not mentioned any alternatives, it is likely that it has found some options and the casino will be operational soon. It will have to consult with SEC for approval of the alternatives.