20th Jul 2016 07:30
LONDON (Alliance News) - Challenger Acquisitions Ltd on Wednesday said it has received USD1 million from New York Wheel Investor LLC.
Challenger, which designs and builds giant observation wheels, had raised the funds in January through a convertible loan note issue, but they were held in escrow by New York Wheel Investor until final funding arrangements for completion of the New York Wheel project were in place.
New York Wheel Investor, which was set up to fund construction of the New York Wheel, has now received sufficient funding commitments from its sponsoring investors and therefore does not require the USD1 million.
Challenger has a USD3 million investment in the New York Wheel, giving it a 2% interest in the project.
Challenger added that the New York Wheel is now expected to open in early 2018, slightly later than expected, due to re-engineering work for newly-indicated geotechnical conditions, wheel fabrication delays and adjustments to wheel erection sequencing.
The New York Wheel is a 630 feet tall observation wheel which is being built on Staten Island. It will have a maximum capacity of 30,000 visitors per day and will offer views of New York Harbour, the Statue of Liberty and the lower Manhattan skyline.
"We believe that the NYW project offers our investors a unique value uplift opportunity and we are delighted to report on the excellent progress that continues to be made in building this momentous entertainment complex," Chief Executive Mark Gustafson said in a statement.
Shares in Challenger were trading up 0.2% at 21.05 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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