LISTED hotel and resorts operator Discovery World Corp. said on Tuesday that its board of directors had approved the conversion of 265 million common shares into preferred shares for a possible capital raising exercise in the future.
“The creation of preferred shares allows for flexibility in the company’s ability to raise fresh capital in the future,” the company said in a disclosure to the Philippine Stock Exchange.
“The conversion requires approval of stockholders of the Company, and thereafter, the approval of the Securities and Exchange Commission. Please note that there is no issuance of preferred shares in this exercise,” it noted.
The number of stocks will be sourced from the company’s unissued common equities, but other details and features have yet to be finalized.
“Other than the conversion … the amendment has no effect to the business, operations and capital structure of Discovery World,” the company said.
Incorporated in 1993 formerly as Southern Visayas Property Holdings Inc., Discovery World is primarily engaged in the hotel and resorts business through its brands Discovery Shores Boracay, Discovery Shores, Platitos Resto-Bar, Sands Lounge, Indigo Resto-Bar and Sunken Pool Bar.