HONG KONG, March 30, 2011 /PRNewswire-Asia/ -- VODone Limited ("VODone" or the "Company"; stock code: 00082.HK), is pleased to announce that after trading hours on 29 March 2011, the Company entered into subscription agreements with (i) China Life Franklin Asset Management Co. Limited for the subscription of 80,000,000 new Shares and (ii) Evenstar Master Fund SPC and Geminis Funds SPC for the subscription of a total of 10,000,000 new Shares, each at the Subscription Price of HK$2.26 per Subscription Share. The gross proceeds from the Subscription amounts to HK$203.4 million. The Subscription Shares represent approximately 3.55% of the existing issued share capital of the Company and approximately 3.43% of the enlarged share capital of the Company immediately after the Subscription.
The Directors believe that the Subscription can provide an opportunity to broaden the Shareholder base and strengthen the capital base and financial position of the Company for the Group's future business developments. Further, the Company considers that the Subscription is currently a preferred method of fund raising as compared with other equity fund raising exercises taking into account the time and costs involved. The Company will use the net proceeds of the Subscription in further expanding the PRC lottery business, in funding potential acquisition opportunities and as general working capital for the Group.
About VODone Limited
VODone (www.v1.cn) is currently the only Internet video broadcasting company listed in Hong Kong. The affiliated company of VODone – VODone Telemedia is a State-owned Enterprise which owns the fullest set of qualifications and licenses in China's New Media industry. It has also obtained the Information Network Communicated Audio-Video Program Licence, Internet News Permit, Value added Telecom Service Operation License, Internet Publication Permit and all other required licenses, ensuring itself a healthy development in the future.
VODone IR website: http://ir.vodone.com