CMGE Announces US$25 Million Private Placement
GUANGZHOU, China, July 26, 2013 (GLOBE NEWSWIRE) -- China Mobile Games and
Entertainment Group Limited ("CMGE" or the "Company") (Nasdaq:CMGE), a leading
mobile game company in China, today announced that it has entered into an
agreement with Champion Plus Group Limited, a subsidiary of Zennon Capital
Partners, L.P., and Grand Synergy Limited, a subsidiary of New World Strategic
Investment Limited, to sell in a private placement an aggregate of 2,500,000
American depositary shares ("ADSs") of the Company at US$10.00 per ADS for
gross proceeds of US$25 million, before deducting offering expenses. The ADSs
will be subject to a 180-day lock-up period. Champion Plus Group Limited will
also receive warrants to purchase up to an aggregate of 100,000 ADSs of the
Company that are exercisable at any time commencing six months after the
closing date and over a two year period.
Closing of the transactions is subject to customary closing conditions and is
to take place within ten days of the signing.
The Company plans to use the net proceeds from these transactions for product
development, R&D enhancement, market promotion activities, expanding sale and
distribution channels and general corporate purposes.
"We are pleased to welcome Zennon Capital Partners and New World Strategic
Investment Limited as our investors," commented Mr. Ken Jian Xiao, CMGE's
Chief Executive Officer. "We believe that the relationships and experience of
these two investors, particularly in the TMT sector, will benefit us in our
future business development activities and in identifying potential financial
and strategic partners."
About Champion Plus Group Limited
Champion Plus Group Limited, a company incorporated in the British Virgin
Islands, is an investment holding company and a wholly-owned subsidiary of
Zennon Capital Partners, L.P., a private equity fund incorporated in the
About Grand Synergy Limited
Grand Synergy Limited, a company incorporated in the British Virgin Islands,
is an investment holding company and a wholly-owned subsidiary of New World
Strategic Investment Limited, which is in turn a wholly-owned subsidiary and
the direct investment arm of New World Development Company Limited
(HKSE:00017), shares of which are listed on the Main Board of The Stock
Exchange of Hong Kong Limited.
CMGE is a leading mobile game company in China with the largest market share
among mobile game developers in terms of revenues in 2010, 2011 and 2012,
according to Analysys International, an independent market research firm. CMGE
has integrated capabilities in the development, operation, sale and
distribution of mobile games in China. Its mobile handset design business
complements its game development business as it pre-installs CMGE's mobile
games and game platforms in the handsets it designs, and enhances CMGE's
knowledge of user habits and preferences and industry trends. CMGE has a large
and diversified portfolio of games, and it has strong game development,
operation and sale and distribution capabilities in China.
This press release contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will,""expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. CMGE may also make written or oral forward-looking statements in
its periodic reports to the U.S. Securities and Exchange Commission, in its
annual report to shareholders, in press releases and other written materials
and in oral statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including statements about
CMGE's beliefs and expectations, are forwardlooking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not limited to the
following: the Company's growth strategies as well as business plans; future
development, results of operations and financial condition; ability to
continue to develop new and attractive products and services; ability to
continue to develop new technologies or upgrade existing technologies; ability
to attract and retain users and customers and further enhance brand
recognition; the expected growth of and trends in the mobile game industry in
China; PRC governmental policies and regulations relating to the mobile game
industry in China; competition in the mobile game industry; and general
economic and business conditions in China. Further information regarding these
and other risks is included in the Company's registration statement on Form
F-1 and other documents filed with the Securities and Exchange Commission.
CMGE does not undertake any obligation to update any forward-looking
statement, except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of the press
release, and CMGE undertakes no duty to update such information, except as
required under applicable law.
CONTACT: For further information, please contact:
China Mobile Games and Entertainment Group Limited
Tel: +852 2700 6168
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