s a result, Philippines-based LRWC has recalled a resolution approved by its board in early-July that called for the issuance of 37 million shares to AsianLogic priced at six cents each from the unissued portion of its authorized capital stock.
“This recall of the resolution was in accommodation of AsianLogic’s preference to defer indefinitely the subscription to said shares in view of the worldwide adverse market conditions,” read a statement from the holding company whose main interests are in gaming. “The Corporation and AsianLogic have agreed to revisit this planned subscription at such time when the market conditions are more stable.”
AsianLogic had planned to operate a land-based sportsbook operation with LRWC while also investing us$ 4.5 million to increase the number of sports on offer to boost betting turnover and profits. LRWC had projected to gain net revenues of us$ 18.3 million over the first three years of the deal, which would have seen the two penetrate the lucrative Asia-Pacific sportsbetting market. This region was notionally projected by one expert report to attain the highest overall spend on gaming, reaching us$ 18.8 billion by 2011.
“This is a good start to enter the regional market by having a strategic partner who is a leader in this kind of business,” Alfredo Abelardo Benitez, President for LRWC, revealed in an interview when the deal was still on.
AsianLogic was founded in 2002 and has been granted online gambling licenses in Alderney and Curacao. In the Philippines, the group operates land-based sportsbetting outlets under the MegaSportsWorld brand. For its part, LRWC owns and operates the Bingo Bonanza chain of bingo parlors through subsidiary First Cagayan.