Landing International Development Ltd., like all casino operators across the globe, has found itself in a precarious financial situation due to the outbreak of the coronavirus. While casinos are finally starting to come back online following an extended shutdown, the road to recovery is not going to be an easy one, and many companies are scrambling to plug the leaks in the revenue dam. Landing is no different, but it has figured out a couple of ways to grab some much-needed cash, including the latest endeavor – selling off assets. The company has dumped its BVI-registered Stepwide Developments Ltd. for about $15.5 million.
Stepwide is a wholly-owned entity under Landing’s umbrella that includes Jumbo Step, incorporated in Hong Kong, and Landing Korea, which is incorporated in South Korea. Landing Korea is listed as the owner of land and facilities in Jeju that had been destined to be used as a training center for Landing, but those plans will most likely now have to be scrapped. The new owner, BVI-registered China Yueda Group Holdings Limited, could conceivably lease back the buildings, but there hasn’t been any announcement over the company’s plans.
The idea of the sale was to gain access to more funds to help operate the business during the COVID-19 shutdown. The move follows on the heels of an investment of about $17.7 million it received late last month when it successfully placed over 585 million shares. In that offering, six different buyers were able to purchase the shares for $0.003 each, with the money being used for “general working capital” of Landing’s Jeju Island operations.
Regarding the latest money-gathering exercise, Landing said in its filing (in pdf), “Following the inception of the integrated leisure and entertainment resorts of the Group in 2017, a new training center developed by the Group in closer proximity to its core businesses and facilities has been in place to carry out training activities of the Group. Hence, the training activities of the Group have been conducted in a more efficient and cost-effective manner in another location thereafter and the utilization of the lands and buildings owned by Landing Korea had decreased substantially in 2019.