Sri Lanka's Marawila Resorts this week announced it would be issuing 24.5 million ordinary shares at Rs. 10/- each by way of a rights issue, according to a Colombo Stock Exchange (CSE) filing by the company.
Also noted was that one new share would be issued for every four existing shares, and that this issue was subject to approval by shareholders at a soon to be called Extraordinary General Meeting. Additionally, it was indicated that the capital raised would be ploughed back into refurbishments for the company's sole property, the 106-room Club Palm Bay.
According to reports, the hotel plans an upgrade to luxury, four star status which will also include increase banquets capacity to 500 pax. Meanwhile, the company also recently recorded revenues of close to Rs. 85 million as per its half year ended on September 30, up 45% year on year from the same period in 2009.
The filing also revealed that the company's current stated capital was Rs. 756 million.