CAI Corp — Capital/Financing Update 2016

Jan 14, 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities of the Company.

CHINA NEW ECONOMY FUND LIMITED 中 國 新 經 濟 投 資 有 限 公 司

(Incorporated in the Cayman Islands as an exempted company with limited liability)

(Stock Code: 80)

(1) RESULTS OF THE RIGHTS ISSUE OF 309,060,000 RIGHTS SHARES AT HK$0.235 PER RIGHTS SHARE ON THE BASIS OF ONE RIGHTS SHARE FOR EVERY TWO SHARES HELD ON RECORD DATE; AND

(2) ADJUSTMENTS OF THE EXERCISE PRICE AND THE NUMBER OF THE OUTSTANDING SHARE OPTIONS

RESULTS OF THE RIGHTS ISSUE

As at 4:00 p.m. on Thursday, 7 January 2016, being the latest time for acceptance of and payment for Rights Shares, 16 valid acceptances of provisional allotments in respect of 75,243,850 Rights Shares had been received, representing approximately 24.3% of the total number of 309,060,000 Rights Shares available for subscription under the Rights Issue. All conditions of the Rights Issue have been fully satisfied and the Rights Issue became unconditional at 4:00 p.m. on Friday, 8 January 2016.

Share certificates for all fully-paid Rights Shares are expected to be posted on or before Friday, 15 January 2016 to those Qualifying Shareholders who have accepted and paid for the Rights Shares, by ordinary post at their own risk.

Dealings in the fully-paid Rights Shares will commence at 9:00 a.m. on Monday, 18 January 2016.

ADJUSTMENTS OF THE EXERCISE PRICE AND THE NUMBER OF THE OUTSTANDING SHARE OPTIONS

As a result of the Rights Issue, the exercise price and the number of the outstanding Share Options have been adjusted with effect from 14 January 2016 in accordance with the terms of the Share Option Scheme and the Supplementary Guidance.

Reference is made to the prospectus (the ‘‘Prospectus’’) of China New Economy Fund Limited (the ‘‘Company’’) dated 16 December 2015 in relation to the Rights Issue. Unless otherwise defined in this announcement, capitalised terms used herein shall have the same meanings as those defined in the Prospectus.

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RESULTS OF THE RIGHTS ISSUE

As at 4:00 p.m. on Thursday, 7 January 2016, being the latest time for acceptance of and payment for Rights Shares, 16 valid acceptances of provisional allotments in respect of 75,243,850 Rights Shares had been received, representing approximately 24.3% of the total number of 309,060,000 Rights Shares available for subscription under the Rights Issue. All conditions of the Rights Issue have been fully satisfied and the Rights Issue became unconditional at 4:00 p.m. on Friday, 8 January 2016.

Underwriting arrangements

Based on the above results, the Rights Issue was under-subscribed by 233,816,150 Rights Shares. In accordance with the terms of the Underwriting Agreement, the Underwriter has procured subscription for all the 233,816,150 untaken Rights Shares.

Despatch of share certificates

Share certificates for all fully-paid Rights Shares are expected to be posted on or before Friday, 15 January 2016 to those Qualifying Shareholders who have accepted and paid for the Rights Shares, by ordinary post at their own risk.

Commencement of dealings in Rights Shares

Dealings in the fully-paid Rights Shares will commence at 9:00 a.m. on Monday, 18 January 2016.

ADJUSTMENTS OF THE EXERCISE PRICE AND THE NUMBER OF THE OUTSTANDING SHARE OPTIONS

Pursuant to the terms of the share option scheme (the ‘‘Share Option Scheme’’) conditionally adopted by the Company on 28 May 2015 and the supplementary guidance (the ‘‘Supplementary Guidance’’) attached to the letter issued by the Stock Exchange dated 5 September 2005 relating to share option schemes, the exercise price and the number of the outstanding share options (the ‘‘Share Options’’) granted by the Board on 11 September 2015 have been adjusted in the following manner with effect from 14 January 2016:

Before adjustments	Before adjustments		After adjustments	After adjustments
		Number of		Number of
Exercise price		outstanding	Exercise price	outstanding
per Share	Share Options		per Share	Share Options
HK$			HK$
0.257		35,026,800	0.250	36,007,550

Separate notification regarding the adjustments will be sent to each holder of the Share Options.

On behalf of the Board of China New Economy Fund Limited Gu Xu Chairman, Chief Executive Officer and Executive Director

Hong Kong, 14 January 2016

As at the date of this announcement, the Board comprises Mr. GU Xu and Mr. CHAN Cheong Yee as executive Directors, Mr. LAM Chun Ho, Mr. Faris Ibrahim Taha AYOUB and Mr. HUANG Liangkuai as independent non-executive Directors.

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