A few days ago, Imperial Pacific International (IPI) Holdings officially revealed that it has inked an agreement with some independent operators to complete the construction of the company’s Garapan-based casino hotel, operate a shopping mall, and lease 15 villas and 250 hotel rooms.
At the time when it announced its annual results for the year that ended on December 31st, 2021, the parent company of IPI CNMI LLC unveiled its endeavors to address all concerns of the operator’s auditors, who reported net losses amounting to HK$1,077,617 for the last fiscal year ending on December 31st, 2021. They also reported net liabilities of HK$8,304,207, net current liabilities worth HK$12,179,909, as well as capital commitments of about HK$509,000,000 as of the end of the previous financial year.
IPI Holdings shared that its board of directors intends to use their best endeavors to take reasonable and practicable actions to resolve the issue.
The company revealed that it had received an indicative offer of a credit facility worth HK$777,000,000. According to the operator, the offer, which is made by an independent financial institution, is valid until September 27th, 2023. No drawdown had been made as of the date of the official announcement of the company.
IPI and Its Subsidiaries Ink a Number of Deals with Third-Party Operators
As mentioned above, the company and its subsidiaries – Best Sunshine and IPI CNMI LLC – have entered into a construction deal with an independent construction company. The latter has agreed to finance and finalize the remaining construction of the Garapan-based casino hotel of Imperial Pacific International.
Earlier this year, on March 30th, IPI Holdings revealed that it entered into a placing agreement with an independent third-party placing agent, CNI Securities Group Limited.
IPI Holdings revealed that, when necessary, additional funding to settle the operations, liabilities, potential liabilities linked to litigation, the community benefit fund, the annual fee for the operator’s casino license, and the capital investments of its subsidiary IPI CNMI are set to be provided by Inventive Star and other related parties. Other financing arrangements would also be considered by the company’s management, considering the increasing capitalization of IPI.
Furthermore, an exclusive cooperation agreement between IPI and Fujian Jiadingsheng Supply Chain Management Co. Ltd. was inked to establish a joint venture that has been given the exclusive right to operate a shopping mall situated on a 1,000-square-meter site for a period of 4 years as of October 20th. According to preliminary estimates, minimum annual revenue of HK$300 million and net profit worth HK$20 million are set to be generated over the term of the IPI and Jiadingsheng’s agreement, with the two companies set to share 51% and 49% of the net profit, respectively.
An underwriting agreement between IPI and Sino Travel Samoa Limited has also been inked. Under the deal, Sino Travel is to underwrite the leasing of 15 villas and 250 hotel rooms and IPI for a period of 4 years, after all necessary approvals and operating permits are granted to IPI by the CNMI Government.