• LRWC P86-million loan to IT firm convertible to shares

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    Listed hotel and recreation firm Leisure and Resorts World Corp. (LRWC) is set to provide another listed firm, DFNN Inc., a loan worth of P86 million, which LRWC can convert to DFNN stake if it opts to.

    In a filing with the Philippine Stock Exchange, LRWC disclosed that it just executed a loan agreement with DFNN, where it agreed to lend the amount of P86 million to the latter.

    The loan, according to the disclosure, shall have a term of 36 months from date of the actual drawdown on the loan, and is subject to an interest rate of 8.5 percent per annum.

    “At the corporation’s option, it may convert the loan into primary common shares of DFNN Inc. at any time beginning on the date of the initial drawdown of the loan and before the expiration of the term of the loan at a conversion price of P4.75,” LRWC told the exchange.

    Listed Diversified Financial Network Inc. or DFNN is engaged in information technology solu-tions and systems integration. The company’s services are divided into systems integration, program-ming and customization, consul-tancy and gaming development.

    LRWC, on the other hand, was originally incorporated as Atlas Fertilizer Corp. and engaged in fertilizer and industrial chemicals production. As part its corporate restructuring in 1996, LRWC’s primary purpose was amended to engage in realty development focusing on the leisure business.

    In October this year, the board of directors of LRWC approved the company’s plan to offer 250 million perpetual preferred shares with 12.5 million detachable warrants issued free of charge, as well as 12.5 million underlying common shares.

    Earlier, LRWC said that it is on the lookout for more existing hotels and casino establishments to add to its portfolio.

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