NagaCorp postpones a share award of US$19 million for six months

NagaCorp, a Cambodian casino operator, has postponed the issuance of 19,226,667 Award Shares worth a total of HK$148.6 million (US$19.1 million) to the company’s directors due to an ongoing closure in Phnom Penh that is expected to last until at least 2020, when it is expected to be completed and reopened as “Naga2.” The reward shares were approved by shareholders in late February, with six board members earning six million dollars each and three board members earning three million dollars each. All ten nominees received 1,166,000 units, with the exception of Founder Dr Chen Lip Keong, who received 1 public unit, which equals to one share instead, because he holds a 100 percent investment in this new development project called ‘Naga 2’.

NagaWorld was meant to be a secure sanctuary for gambling, however they ceased operations mere days following the company’s EGM. The reason for this was that 11 employees tested positive for COVID-19 as part of a mass testing programme. Almost four months later, Naga World has failed to reopen, and it appears that not only will this casino never reopen, but their shares may no longer exist by December 2021 if all goes as planned!

So far, this company has had a difficult year. They announced in January that 600 employees would be laid off due to financial difficulties caused by the COVID-19 pandemic in February of 2019, and just last week, on March 7th, it was revealed that the Naga World casino had shut down, resulting in the sale of $200 million in notes as liquidity issues arose.

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