AERL to launch $63 million rights issue

 

Asia Entertainment & Resources Ltd. said it would offer its existing shareholders rights to purchase $63 million in new shares at $3 a share. Lam Man Pou, chairman, and Vong Hon Kun, chief operating officer, agreed to purchase 34 percent of the shares underlying rights unexercised by other stockholders at a price of $4.50 a share. The proceeds of the rights issue will be used to repay shareholder loans as the Nasdaq-listed company is seeking a dual listing in Hong Kong and needs to demonstrate financial independence from shareholders to meet Hong Kong listing requirements.