A8 Completes Second-round Share Sale in Duomi Music
Hong Kong Exchanges and Clearing, 12/14/12
Chinese online and mobile music wireless value-added service provider A8 Digital Music Holdings (0800.HK) has announced that it has completed the second round of share subscription in its mobile-music service Duomi Music. Upon completion, Phoenix Success, Huayi, and Hina, the investors in Duomi Music, paid 70% of their aggregate subscription prices in the respective amounts of USD 4.2 mln, USD 2.1 mln, and USD 0.7 mln, respectively, to Duomi Music, and Duomi Music allotted and issued 13,853,868, 6,933,146, and 2,311,049 Duomi Music Preferred Shares to Phoenix Success, Huayi and Hina, respectively.
The remaining 30% aggregate subscription price for the subscription of the Duomi Music Preferred Shares, subject to the user targets accomplishment rate to be notified by Duomi Music 30 days after December 31 2012, will be payable by Phoenix Success, Huayi and Hina to Duomi Music as a final installment, or adjusted final installment or will be fully exempted from payment to Duomi Music depending on the valuation adjustment in accordance with the shareholders agreement.
Upon completion and assuming a full conversion of the Duomi Music Preferred Shares, Phoenix Success, the largest shareholder, holds an aggregate of 50,247,228 Duomi Music Shares, representing: (i) approximately 46.38% of the share capital of Duomi Music as enlarged by the Second Duomi Music Share Subscription assuming no exercise of options under the existing employee stock ownership plan (ESOP); and (ii) approximately 40.44% of the share capital of Duomi Music as enlarged by the Second Duomi Music Share Subscription assuming a full exercise of all the options under the existing ESOP in full.
Editor's Note: For more background on this topic, please see "A8 Acquires 43% Stake in Duomi Music" MD 9/19/11 issue.
Keywords: wireless A8 mobile music Duomi Music Duomi investment
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