Philippine Resorts on Course for Financing of Casino Project in Cebu
In the growing gaming market throughout Asia, analysts predict that the Philippines will rise as a key player. This anticipation has inspired PH Resorts Group to search for renewed support for its Emerald Bay resort project in Cebu. Luckily, progress is being made.
Previously, PH Resorts had struck a deal with Bloomberry Resorts for two ventures, one in Cebu and the other in the Clark Freeport Zone. Their negotiations, however, dragged on for nearly a year until Bloomberry, owned by billionaire Enrique Razon Jr.'s gaming and hospitality business, withdrew from the agreement in March of this year.
Despite the setback, PH Resorts is optimistic about its two in-progress projects in the Philippines. They anticipate significant returns and are confident in moving forward.
Assessing Their House
A subsidiary of Udenna Group, which consists of various Philippine companies specializing in various sectors such as oil, logistics, telecommunications, gaming, and more, PH Resorts has been struggling. As a result, their shares are down by more than 23% in the past year, trading on the Philippine Stock Exchange.
To bounce back, the company introduced a plan to increase its authorized capital stock by approximately 100%. As many as 15 billion shares will now be available, with its board of directors deciding what to do with them. They can sell the shares and accept both cash and non-cash properties as payment. The announcement also indicated that there had been plans to sell off some of its assets, but nothing concrete has materialized yet.
The company's inability to turn a profit has led to losses for two consecutive years. A loss of $2.8 million in 2021 was followed by $14.5 million in 2022. These losses have caused delays in the construction of the Emerald Bay project and extended the projected launch date even further.
Meeting With Investors
While shareholders voted to increase the authorized capital stock on Wednesday, PH Resorts was also in discussions with potential investors to secure additional funding. The Manila Standard mentioned the same day that the company was in the "final stages" of finalizing several agreements.
Sitting at the helm is PH Resorts Chair Dennis Uy, who's smoothing out deals with "one foreign and one local investor" for the Emerald Bay project. PH Resorts has yet to release specifics about these agreements, but has promised to fill in the blanks "at the soonest possible time."
When completed, the Emerald Bay project will reportedly offer 780 rooms, five villas, and a fully-functional casino with 729 electronic slots and 146 gaming tables. The initial target for the resort's debut was 2022, but due to financial challenges, its completion date is still up in the air.
The Clark Freeport Zone's Base Resort Hotel and Casino, which was previously on the agenda, has been temporarily shelved. Now, all of PH Resorts' attention is trained on Cebu. The business officially paused its efforts on the property in 2021, asking the Philippine government to postpone the project's license.
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Source: www.casino.org
