China Star Entertainment issues HK$70 mln convertible notes

China Star Entertainment (0326) announced to issue convertible notes valued at HK$70 mln to three independent persons at an initial price of HK$0.02 each, 16.3% discount to the closing price of yesterday. If the notes were fully exercised, China Star need to issue 350 mln new shares, which represent 19.85% of the existing issued shares and 16.56% of the enlarged capital.

The batch of notes reach expiry on June 30, 2004 with annual rate of 4% and the company should pay the interest rate every half year, but should not exercise the converting rights before July 1, 2002.

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