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HONG KONG, Nov 10, 2014 - (ACN Newswire) - Hosa International Limited ("Hosa" or the "Company" and, together with its subsidiaries, the "Group", stock code: 2200), one of the largest indoor sportswear brands in China, is pleased to announce that on 7 November 2014, the Company had entered into the conditional Warrant Subscription Agreement with the Keen Mate Limited ("the Investor") in relation to the proposed issuing of a total of 82,729,300 Warrants, in order to accelerate the Group's overall plan in the sports health field.
 | | Hosa Introduces Strategic Investor |
Pursuant to the agreement, the Warrants entitle the Keen Mate Limited to subscribe for in aggregate 82,729,300 Warrant Shares at the Warrant Subscription Price of HK$4.31 per Warrant Share (subject to adjustment) for a period commencing on the date of issue of the Warrants and ending on the date falling two years after the date of the issue of the Warrants. The Warrant Subscription Price represents: a premium of approximately 39.9% over the closing price of HK$3.08 per Share as quoted on the Stock Exchange on 7 November 2014, being the date of entering into the Warrant Subscription Agreement; and a premium of approximately 38.9% over the average of the closing prices of HK$3.10 per Share as quoted on the Stock Exchange for the last five trading days immediately prior to the date of Warrant Subscription Agreement.
The Warrants are not transferable or exchangeable, and the Warrant Shares are only transferrable one year after exercise of the subscription rights attaching to the Warrants.
Assuming the full exercise of the subscription rights attaching to the Warrants, it is expected that approximately HK$356.6 million will be raised.
In conjunction with the Issue of Warrants and to facilitate the investment by Keen Mate Limited and as a support to the continuing growth of the Group, on 7 November 2014 (after trading hours), the Vendor have entered into the Sale and Purchase Agreement with the Investor and the Guarantor, pursuant to which the Investor agreed to acquire from the Vendor 165,293,141 Shares, representing approximately 9.99% of the total issued share capital of the Company as at the date of this announcement, at a consideration of HK$484.3 million, equivalent to HK$2.93 per Share.
The entire issued share capital of the Keen Mate Limited is beneficially and legally owned as to 100% by Dr. Zhang Jionglong. Dr. Zhang Jionglong has extensive operational and management experience in the healthcare industry, is familiar with the development of the healthcare sector and the related application of internet, and has excellent capability to integrate resources in this sector. Dr. Zhang Jionglong was graduated from Shantou University Medical College in 1983 and had practiced as a doctor for 10 years afterward. Since 1993, Dr. Zhang Jionglong has been engaging in the pharmaceutical, medical equipment and healthcare product industries; he is currently the director of companies such as Sihuan Pharmaceutical, Chongqing Haifu Medical Technology Co. Ltd., Shenzhen Basda Medical Apparatus Co., Ltd. and Sayes Medical Technology Co., Ltd.. Dr. Zhang Jionglong's
investments cover the entire healthcare industry chain.
Mr. Shi Hongliu, Chairman and Executive Director of Hosa International Limited says, "Hosa will rely on its own strengths in the sports and health industry, and will be committed to develop as a leading group in sports and healthy lifestyle. Based on the principle of complementary advantages, and related fields of competitive enterprises a wide range of strategic cooperation, in order to accelerate the Group's overall plan in the sports health field, and to achieve the Group's strategic goals. The introduction of Keen Mate Limited is strategically meaningful for the implication of Hosa's plan on health and sport industry, especially to enhance the experience, expertise, and resource integration on health services. By setting the direction of building a high-quality sports and health ecosystem, targeting healthy life-style population and sport lovers as consumers and based on the big data of health and sports to find out the demand of users on products and service, Hosa will improve and develop the health and sports products, sports and fitness services, health services. Hosa will provide full range of products and sports health from any location through mobile Internet applications and O2O to target consumers anywhere, anytime, anyway through personalized and high-quality sports and fitness health services."
Doctor Zhang Jionglong of Keen Mate Limited indicates, "Our investments cover the entire healthcare industry chain. To be a strategic partner of Hosa is for their strengths and strategic plan in sports and health industry. Advantages of two sides are complementary. We have experience in the field of health, rich resources and outstanding ability to integrate resources. We have in-depth research of the future development of the health industry and Internet applications. Cooperating with Hosa, we believe, in the health services field, will provide support and assistance as needed to Hosa in the implementation and development of strategic plan in health and sports industry."
Mr. Shi Hongliu, Chairman and Executive Director of Hosa International Limited concludes, "Sports and health industry have vast untapped potential for development in China, with trillions of market prospects. After the introduction of strategic investor, Hosa and its controlling shareholders, strategic investors, have advantages in all three areas of sports and health products, sports and fitness services, and health service and are equipped with a unique and complete industrial chain structure. In recent years, China government intensively launches a series of policies and measures to support the development of health and sports services and upgrades the development of these two areas to a national strategic level. In September, 2013, the State Council issued the "State Council on Promoting the Development of Health Service Industry", stating that by 2020, the market size of health services will reach 8 trillion yuan or more. In October, 2014, the State Council issued "On Accelerating the Development of the Sports Industry and Boosting Sports Consumption", to deploy actively expanding the supply of sports products and services. The State Council supports the sports industry as a green industry, and sunrise industries. By 2025, the total market size of the sports industry will be more than 5 trillion yuan, as an important factor to promote the sustained economic and social development. Hosa will seize this great opportunity for development, and actively promote the implementation of the company's strategy of sports and health industry, to provide consumers with high-quality and wholesome healthy life experience, and also to create greater benefits for our shareholders."
Topic: Issue of Stocks/Bonds
Source: Hosa International Limited
Sectors: Daily Finance
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From the Asia Corporate News Network
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