Casino operator Imperial Pacific International Holdings, Ltd. is set to issue one billion shares worth HK$150 million (US$18.7 million) meant to cover outstanding loan obligations.

In a disclosure to the HongKong Stock Exchange on Monday, Imperial Pacific announced that Ally High Limited will subscribed for the one billion shares at a price of HK$0.15 (US$0.02) per share. Imperial Pacific is optimistic that the market value of its shares will fetch up to HK$142 million (US$18.30 million) on the last trading day.

“The consideration in the aggregate sum of HK$150 million shall be satisfied by setting-off the loan due from the company to the subscriber of the same amount upon completion,” the casino operator explained. “The directors are of the view that the subscription will provide a good opportunity to strengthen the financial position and broaden the shareholder and capital base of the Group so as to facilitate its future development.”

As of last Friday, the company had some 140.6 million shares in issue. Of the total, 64.7 per cent were held by Inventive Star Ltd.