Leisure and Resorts World Corp (LRWC) is set to acquire shares in information technology firm DFNN Inc following the conversion of its debt into equity.
In a disclosure to the Philippine Stock Exchange, LRWC said it sent a conversion notice to DFNN exercising the former's option to convert the balance of an outstanding loan to primary common shares in the latter.
Last month, LRWC executed an P86-million convertible loan agreement with DFNN.
In a phone interview, Freddie Reyes, LRWC head of investor relations, said the gaming company will end up with a nine-percent stake in DFNN after the conversion.
Under the terms of the deal, the three-year loan would carry an interest rate of 8.5 percent per annum and an option for conversion into primary common shares in DFNN at any time starting on the date of initial drawdown and before the credit expires at a conversion price of P4.75.
In a text message, DFNN president Ramon Garcia Jr. said the loan will finance general working capital, acquisition of gaming outlets, legal fees, research and development of additional games and acquisition of gaming equipment.
"We will like to use their machines on our existing outlets to have more games and more products for our clients," Reyes said.
Earlier, DFNN's unit Inter-Active Entertainment Solutions Technologies (IEST) deployed XChangebet betting systems at Resorts World Manila. XChangebet is a peer-to-peer betting system that allows players to place bets on a variety of sporting and non-sporting events.
IEST is a provider of betting and gaming solutions to Pagcor. IEST's gaming systems have been approved for deployment in over 29 Pagcor-authorized venues.
LRWC runs gaming operations through AB Leisure Exponent Inc, which operates the professional bingo gaming through Bingo Bonanza Corp, and First Cagayan Leisure and Resort Corp, which conducts internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.
LRWC, which earlier acquired Midas Hotel and Casino, is also part of the consortium that is building City of Dreams Manila, which is set to open at the Entertainment City of state-run Philippine Amusement and Gaming Corp next year.
source: interaksyon.com
