Xinhua Sports & Entertainment to raise US$7.5 mln

Oct. 27, 2009 (China Knowledge) - Xinhua Sports & Entertainment Ltd<XSEL> yesterday announced that it plans to sell 5.51 million American depositary shares for US$1.36 per ADS or US$7.5 million in total to selected institutional investors, sources reported.

The Nasdaq-listed enterprise declined 26.59% to US$1.27 yesterday after the announcement.

The firm will also offer two series of warrants for the purchase of up to 14.89 million A common shares, equivalent to 7.44 million ADS. The 3.86 million series A warrants will have an exercise price of US$0.975 per share, and the 11.03 million series B warrants will have an exercise price of US$0.68 per share.

Last week, the sports and entertainment media firm sold its 100% stake in Shanghai Hyperlink Market Research Co Ltd to Intage Inc, a market researcher based in Tokyo, Japan.

Reportedly, Xinhua Sports & Entertainment intends to post fiscal results for the third quarter on Nov. 12.