ONE of Imperial Pacific International’s former junket operators is now part owner of IPI’s Hong Kong-based parent company, IPI Holdings Ltd.
IPI (CNMI) LLC told Variety on Wednesday that on Jan. 13, 2022, its parent company received a notice from one of its part owners, Super Champion, which “exercised its rights” to transfer convertible notes in the amount of HK$187.5 million or $24 million to Dong Jiming.
Dong Jiming is the owner of High Tides which, in 2019, was issued a junket operator’s license by the Commonwealth Casino Commission.
In April 2021, the casino commission suspended junket operators’ licenses in response to Gov. Ralph DLG Torres’ April 8, 2021, letter expressing his own “concerns about the present junket program.”
In November 2020, the casino commission noted that the Chinese government’s blacklist system for cross-border gambling could have “very serious implications not only on casino gambling here but on the tourism industry in general.”
Among IPI Holdings’ owners, Super Champion was the only holder of outstanding convertible notes, IPI (CNMI) LLC.
A convertible note is a form of short-term debt that converts into equity, typically in conjunction with a future financing round. In effect, the investor would loan money to a startup and instead of a return in the form of principal plus interest, the investor would receive equity in the company.
On Jan. 14, 2022, IPI Holdings received a conversion notice from Dong Jiming who “exercised the conversion rights attaching to convertible notes in the amount of HK$187.5 million or $24 million to convert convertible notes into conversion shares of the company [IPI Holdings] at the conversion price of HK$0.625 or $.01 per conversion share.”
IPI management said the conversion shares valued at $24 million were issued to Dong Jiming on Jan. 20, 2022. Immediately after the issue of conversion shares, IPI Holdings’ shares went up to 10.6 billion shares from 7.1 billion shares.
IPI management said it immediately reported this development to the casino commission.
During a meeting Thursday, the commission’s executive director, Andrew Yeom, told the commissioners that it is the commission’s duty to constantly monitor IPI Holdings’ share movements on the Hong Kong Stock Market.
He said any change in the ownership of IPI Holdings affects IPI CNMI.
Right now, according to IPI’s management, Chinese businesswoman Cui Lijie has a 58.58% stake in IPI Holdings. But the recent issuance of conversion shares to the former junket operator has reduced Cui’s stake.
Yeom noted that the commission can “object to any new owner if he or she is found unsuitable by the commission.”
So far, he added, the commission’s investigation division “has not found any detrimental issue with Mr. Dong Jiming at this time, and we will report to you if we find any issue with him in the future. For now this transaction is good to go unless we find otherwise,” Yeom told the commission.
Commonwealth Casino Commission Executive Director Andrew Yeom reports to the commission on Thursday in the commission’s conference room in Gualo Rai.
