Tigrede Cristal’s VIP results beat forecastsNearly300 million shares to be placed in a funding roundThefunding round hopes to raise $38 million
Tigre de Cristal’s financialperformance is headed for a record-high VIP segment profit, but theresort still needs more money to complete its development.
Summit Ascent Seeks to Raise $38 Million
Summit Ascent Holdings Ltd continues to bet big on the Tigre de Cristal casino resort, a Northern gambling gateway in the Russian frost-bitten territories. The company is now looking to raise additional $38 million through the sale of shares that will be issued in the coming weeks.
Ascent Holdings Ltd Communicated itsintentions with the Hong Kong Stock Exchange on Thursday,July 25, with a preliminary agreement including some 300million shares. The company will have to sell to at least sixindependent parties with the price per action at roughly $0.15. Thecompany specified that it’s expecting to raise $38 million.
Why Does the Tigre Needs More Capital?
In its official statement, Ascent explained that the fresh proceeds will be used to develop the gaming and hospitality verticals in the Primorye Integrated Entertainment Zone, a special territory in Russia that has been designed for the purposes of economic ventures, and gambling specifically. The money should help the property:
Bolster its VIP segmentUp the count of slot and tablegamesReplace old games with new onesTransition to stage two of thesecond phase of development
Tigre de Cristal’s location may seemremote, but it has been successfully drawing customers from Chinaas well as North and East Asia. The second phaseof investment in the resort would be anything between $400 millionand $500 million.
Refurbishing the Venue and Building a World ClassCasino
The property is already in “phasetwo” of its development process. As of immediate plans, Tigre deCristal will be adding 50 more gaming tables specifically targetingthe VIP segment and replac 7BALL ing any old-fashioned devices on theproperty.
Estimated 300 new slot machines willalso be included in the property, signalling Tigre’s ability to caterto demand but also the expected potential influx. The VIP segment isof particular importance to the casino with the segment jumping by250% in May, 2019.
Eric Landheer,director at Ascent, has been optimistic about the project despite thehuge sums that are needed to bring the second stage of development toa meaningful conclusion. In May, 2019, Brokerage UnionGaming Securities Asia Ltd suggested that Tigre de Cristal’s VIPproceedings could hit a record $7 billion, putting the property onthe map in a big way.
