Silver Heritage Group has wrapped up the retail component of its shares offering. The event was anything but the huge success the company had anticipated, bringing in only about a quarter of the revenue it had hoped to garner. The casino operator had been looking for US$4.03 million, but only collected $1.05 million.
The company announced the results to the Australian Securities Exchange (ASX) this past Wednesday. It indicated that it had received applications from qualified shareholders to sell 73.2 million shares and that another 8.9 million shares were offered through the Top-Up Facility, bringing in an additional $129,731.
The good news is that Silver Heritage has been able to raise almost all of the capital it had hoped to collect. Because the share offering was underwritten in its entirety, 177.6 additional shares have been allocated to the underwriter, bringing the total amount collected to $3.74 million.
The offering follows an institutional share offering presented by the company earlier this month. That offering attracted $5.4 million, which is to be spent on the company’s Tiger Palace Resort Bhairahawa in Nepal.
Silver Heritage has had somewhat of a rough month. It has suspended trading twice on the ASX due to increased first-half losses and announced that it was working on a plan to raise capital. The company reported losses of $9.9 million for the first half of the year, an increase of 182% over the same period in 2017.
Those two suspensions aren’t the only ones in the company’s history. In February of last year, it had to halt trading after a “shortage of liquidity in the Nepal banking system” resulted in delays to the opening of the Tiger Palace.
The casino operator is still clamoring to get back to black. It is launching several casino projects, including a second casino in Nepal. That project gave the company some hope of a brighter future after it finally received approval to purchase the land rights for the operation, which will be located in Jhapa.
Since opening at the end of last year, Tiger Palace has only been treading water. If Silver Heritage expects to see a drastic turnaround, it would be a good idea to re-evaluate its current model and future business plans.