Macau (MNA) – Gaming company Amax International Holdings Limited has announced on Monday that its chairman and CEO, Ng Man Sun, has exercised conversion rights for HKD50.5 million (US$6.4 million) out of HKD104.5 million in convertible bonds handed to him by the company, at a conversion Price of HKD0.30 per share.
According to Amax’s filing at the Hong Kong Stock Exchange, Mr. Ng sent the conversion notice on January 29, with the company having allotted and issued a total of 168,333,333 Second Conversion Shares on February 4, 2019, representing about approximately 15.88 per cent of Amax’s shares after conversion.
After the allotment, Mr. Ng’s share hold in the company’s was increased from 6.44 per cent to 21.30 per cent, with the remaining held by other public shareholders.
These bonds had been issued to Mr. Ng by Amax in March, 2018 to repay an aggregate amount of HKD104.5 million assigned to Mr. Ng that had been handed to two former board members in promissory notes.
On March 22, 2006, Amax issued a tranche of 10-year zero-interest promissory notes with total face value of approximately HKD1.45 billion as part of the consideration for acquiring a further 30 per cent equity interest in Greek Mythology (Macau) Entertainment Group – the company responsible for the management of the Greek Mythology casino at the now shuttered Beijing Imperial Palace – from Mr. Ng.
However, at the direction of a woman named Ms. Chen, ‘at all material times an assistant of Mr. Ng’ whom the company mistakenly believed was authorized to issue such orders, a promissory note of HKD150 million was issued to a woman named Lee Bing and a HKD40 million promissory note to a man named Wu Weide.
In 2012 after Mr. Ng was appointed chairman and CEO of the group and appointed his nominees to the company Board of Directors it was discovered he had not authorized the company to issue the notes and had not received any consideration for the issue, suing both the company and the two holders.
On July, 2018 Ms. Lee returned the promissory note to the company for cancellation and has assigned the sum of HKD82.5 million to Mr. Ng, with Mr. Wu doing the same with his promissory note and assigning HKD22 million sum to Mr. Ng, with Amax having repaid the Mr. Ng through the convertible bonds issue.
Amax indicated in its latest financial report that its revenues for the year ended on March 31 2018 had increased 445.6 per cent year-on-year to HKD62.2 million, with the increase in revenue was mainly attributable to the revenue derived from the gaming business in Vanuatu.
[Photo by Dennis Owen/Bloomberg News]