IP E-Game Ventures, Inc. will be selling 100% of its real estate shares in New Wave Strategic Holdings Ltd., the listed firm that started out in online gaming said on Thursday.
The move comes after the company decided to shift its primary focus on financial technology (fintech) and related sectors. It was incorporated in 2005 to engage in the interactive gaming and content distribution business here and abroad, among others.
IP E-Game said in a disclosure to the stock exchange that the sale by the corporation of its shares, which comprise the real estate portion of the subsidiary, “is part of this realignment.”
The write-down value of the investment in New Wave Strategic was lowered to P500 million from P2.5 billion, based on the unit’s landholding valuation.
“The pandemic and spread of COVID-19 (coronavirus disease 2019) have heavily affected the hotel and integrated resort industry as there is basically no global tourism, which is the lifeblood of integrated resorts,” IP E-Game said.
“Given the pandemic, the underlying investment consortium in Vietnam has decided not to pursue the integrated resort project in the landholding, and therefore, the corporation is reflecting a write-down for adjustment in valuation of its landholding,” it added.
To further fund its transition to fintech, IP E-Game’s board of directors also approved a fund-raising program, which will be done via a P2-billion private placement. This will take place once its amended articles of incorporation have been approved.
It will be appointing an advisor to assist the management in the program, IP E-Game said. The plans are still subjected to further definitive agreements.
Shares of IP E-Game at the stock exchange were last traded on May 2 for P0.0094 apiece. — Keren Concepcion G. Valmonte