Xinhua Sports & Entertainment Limited Raises $7.5 Million in Registered Direct
Offering
BEIJING, Oct. 26 /PRNewswire-Asia-FirstCall/ -- Xinhua Sports &
Entertainment Limited ("XSEL" or the Company"; Nasdaq: XSEL), a leading sports
and entertainment media company in China, announced today that it has entered
into definitive agreements to sell 5,514,705 American depository shares
("ADS")
at a price per ADS of $1.36 in a registered direct offering to several select
institutional investors, representing gross proceeds of $7.5 million.
Investors will also receive two series of warrants to purchase up to an
aggregate of 14,889,703 class A common shares of the Company (equivalent to
approximately 7,444,851 ADS). The Series A warrants to purchase up to
3,860,293 class A common shares (equivalent to approximately 1,930,146 ADS)
will have an initial exercise price of $0.975 per common share ($1.95 per ADS)
and are exercisable at any time commencing six months after the closing date
and on or prior to the fifth anniversary of this date. The Series B warrants
to purchase up to 11,029,410 class A common shares (equivalent to 5,514,705
ADS) will have an initial exercise price of $0.68 per common share ($1.36 per
ADS) and are exercisable at any time commencing on the closing date and on or
prior to the six month anniversary of this date.
The closing of the offering is expected to take place on or before October
29, subject to the satisfaction of customary closing conditions.
The Company plans to use the net proceeds from the offering for working
capital purposes.
The class A common shares represented by the ADSs and the warrants are
being offered by XSEL pursuant to an effective shelf registration statement
filed with the Securities and Exchange Commission and declared effective on
September 16, 2009. Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman
& Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as the exclusive placement
agent in the offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any state or jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such state or jurisdiction. The ADSs and the warrants may only be
offered by means of a prospectus. Copies of the prospectus supplement and
accompanying base prospectus relating to the offering can be obtained from the
SEC's website at http://www.sec.gov .
About XSEL
Xinhua Sports & Entertainment Limited ("XSEL"; NASDAQ: XSEL) is a leading
sports and entertainment media company in China. Catering to a vast audience
of young and upwardly mobile consumers, XSEL is well-positioned in China with
its unique content and access. Through its key international partnerships,
XSEL is able to offer its target audience the content they demand -premium
sports and quality entertainment. Through its Chinese partnerships, XSEL is
able to deliver this content across a broad range of platforms, including
television, the Internet, mobile phones and other multimedia assets in China.
Along with its integrated advertising resources, XSEL offers a total solution
empowering clients at every stage of the media process linking advertisers
with China's young and upwardly mobile demographic.
Headquartered in Beijing, the company employs more than 1,000 people and
has offices and affiliates in major cities throughout China including Beijing,
Shanghai, Guangzhou, Shenzhen and Hong Kong. Xinhua Sports & Entertainment
Limited's shares are listed on the NASDAQ Global Market (NASDAQ: XSEL).
For more information, please contact:
XSEL
Media Contact
Joy Tsang
Tel: +86-10-8567-6050
Tel: +86-136-2179-1577
Email: joy.tsang@xsel.com
IR Contact
Edward Liu
Tel: +86-10-8567-6061
Email: edward.liu@xsel.com
American Capital Ventures
Howard Gostfrand
Tel: +1-305-918-7000
Toll free: +1-877-918-0774
Email: info@amcapventures.com
SOURCE Xinhua Sports & Entertainment Limited
Media Contact - Joy Tsang, XSEL, +86-10-8567-6050, +86-136-2179-1577, or
joy.tsang@xsel.com; or IR Contact - Edward Liu, XSEL, +86-10-8567-6061, or
edward.liu@xsel.com; or Howard Gostfrand, American Capital Ventures,
+1-305-918-7000, toll free +1-877-918-0774, or info@amcapventures.com
