Shares remain in voluntary suspension
Casino operator and developer Silver Heritage Group. Ltd. is within weeks of finalizing the funding for its Tiger Palace Resort Bhairahawa in Nepal, reports GGRAsia.
In a filing to the Australian Securities Exchange on April 12, the company said it expects to announce the completion of the funding package by the first week of May. Silver Heritage has increased the resort’s budget by more than a third, requiring it to raise US$14.8 million in new capital to complete the project, including US$1 million as working capital.
The project initially estimated at US$40 million will now cost nearly US$55 million. Silver Heritage raised US$19 million in August 2016 through a public offering to complete the original US$40 million cost target, according to Forbes.
Last month, the company posted a US$4.58 million net loss due to the ongoing construction. But in a regulatory filing March 29, it reported an annual loss 14 percent lower than predicted during its IPO. The company’s shares are in voluntary suspension on the Australian Securities Exchange and will stay that way until the details of the capital raising are completed.
Silver Heritage said it is talking with equity providers, brokers and holders of its senior secured bonds regarding the capital raising. “The company intends that the capital to be raised will fully fund the completion of Tiger Palace, enabling the opening of the hotel and casino within the revised time frame,” said the firm, which has pushed back the completion timetable for the project to late 2017.
The firm said in March that the opening of Tiger Palace would be done in stages, with the hotel operative from August 2017, followed by a “grand opening in November 2017” for the resort and gaming facility. The target markets for Silver Heritage include Delhi, Uttar Pradesh, Bihar and West Bengal, and an estimated 430 million people who will live within a six-hour drive of the resort.
