With a share price plunging as a result of president Rodrigo Duterte's diatribe against online gambling, online gambling firm asks for a three day hiatus
The Philippine online gambling group PhilWeb Corp., reeling from a more than 22 percent plunge in its share price, thanks to anti-online gambling comments from the new president of the country, has asked the Philippine Stock Exchange for a voluntary three-day suspension in trading on its shares.
"In view of unverified material information affecting the business of PhilWeb Corporation that will materially affect the investing public, we hereby request for a trading suspension in PhilWeb shares from to ," Raymund S. Aquino, PhilWeb corporate information officer, said in a letter to the Philippine Stock Exchange Monday.
InfoPowa readers will recall that on the president's orders, online licensor Philippine Amusement and Gaming Corporation has placed a moratorium on the issue of any licenses… and Philweb's contract with PAGCOR expires on July 11 this year.
PhilWeb currently operates a network of 268 PAGCOR e-Games cafes with a total of 8,839 gaming terminals nationwide.
The company is also concerned that the rapid decline in its stock price could impact its plan to raise P6 billion through the sale of Treasury shares, which may also be in danger following the president's declarations and directives
Last month, PhilWeb announced it would make a private placement of up to 300 million shares at a discount to market but in no case less than P20 per share.
"The private placement will result in PhilWeb receiving cash and receivables of at least P6 billion. With this war chest, the company will have the ability to go on an aggressive expansion program," PhilWeb said.
The 300 million shares is equivalent to a near 20 percent stake in the company, local observers have noted.
Online Casino News Courtesy of Infopowa