Wednesday, 05 December 2007 Imagi to use convertible bond placement to finance production of its future films, including Astro Boy and Gatchaman
Hong Kong (December 5, 2007) – Imagi International Holdings, Limited (HKSE Stock Code: 585 (“Imagi”) today announced the placement of HK$406 million in convertible bonds. The lead investor is Singapore-based Oxley Capital Group, with other investors including CQS Capital (London) and Winnington Capital (Hong Kong).
Imagi will use the proceeds from the convertible bond placement to finance production of its future films, including Astro Boy and Gatchaman, both scheduled for release in 2009. The films will be distributed globally by Warner Brothers and The Weinstein Company.
The zero coupon convertible bonds HKD $2 million in denomination with three year maturities. Conversion price is HKD $1.768, representing a 25% conversion premium over current market price. Assuming full conversion, the bonds would represent a stake of approximately 12.3% in Imagi, on a fully diluted basis.
“Imagi produces top-quality, Hollywood-style animated movies at significantly lower costs than its US-based competitors,” said Mark Pawley, a Director at Oxley Capital. “The economics are compelling, as are the management team, the films in production, and the upside potential of the company.”
“Imagi is pleased to welcome Oxley Capital and CQS to our investor roster,” said Douglas Glen, Co-CEO of Imagi. “They are respected investors with reputations for adding significant value to their portfolio companies.”
* assumes exchange rate of HK$7.80 to US$1.00
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I don't quite get what does it mean exactly...but I think thats a good news to the company...
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