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Crypto Flow Technology Limited Capital/Financing Update 2012

Nov 13, 2012

51323_rns_2012-11-13_431d822e-96c6-4f3c-b90b-fc60cb24c771.pdf

Capital/Financing Update

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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.

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MelcoLot Limited

(Incorporated in the Cayman Islands with limited liability) (Stock Code: 8198)

(I) RESULTS OF THE OPEN OFFER; (II) ADJUSTMENTS TO THE 2012 CONVERTIBLE BONDS AND THE SHARE OPTIONS; AND (III) COMPLETION OF THE TRANSACTIONS

RESULTS OF THE OPEN OFFER

The Board is pleased to announce that all of the conditions set out in the Underwriting Agreement have been fulfilled at 6:00 p.m. on Monday, 12 November 2012. Accordingly, the Open Offer became unconditional.

At 4:00 p.m. on Wednesday, 7 November 2012, being the Latest Time for Acceptance, a total of 9 valid acceptances in respect of 233,700,484 Offer Shares provisionally allotted under the Open Offer were received, representing approximately 15.5% of the total number of the Offer Shares available for subscription under the Open Offer. Based on the above acceptance results, the Open Offer was under-subscribed by 1,275,200,315 Offer Shares, representing approximately 84.5% of the total number of 1,508,900,799 Offer Shares. Pursuant to the Underwriting Agreement, the Underwriters had agreed to underwrite, in aggregate, up to 1,273,566,615 Offer Shares.

ADJUSTMENTS TO THE 2012 CONVERTIBLE BONDS AND THE SHARE OPTIONS

Upon the Open Offer becoming unconditional on Monday, 12 November 2012 and pursuant to the instrument of the 2012 Convertible Bonds, the conversion price of the 2012 Convertible Bonds was adjusted. As a result, the number of Conversion Shares to be allotted and issued upon the exercise of conversion rights attached to the 2012 Convertible Bonds was changed accordingly. The aforesaid adjustment was conducted in the manner as set out in this announcement below.

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Similarly, upon the Open Offer becoming unconditional on Monday, 12 November 2012 and pursuant to the terms of the share option scheme of the Share Options, the exercise price of the Share Options and the number of Shares to be allotted and issued upon exercise of the subscription rights attaching to the outstanding Share Options were adjusted accordingly in the manner as set out in this announcement below.

COMPLETIONS OF THE INTRALOT DISPOSAL, THE GCH DISPOSAL, THE CB REPURCHASES AND THE OPEN OFFER

The Board is pleased to announce that all conditions precedent set out in the Disposal Agreements and the Underwriting Agreements have been fulfilled at 6:00 p.m. on Monday, 12 November 2012. GCH Disposal Completion and completion of the repurchase of the GCH 2012 Convertible Bonds took place in the late evening on 12 November 2012. Intralot Disposal Completion, completion of the repurchase of the Intralot 2013 Convertible Bonds and completion of the Open Offer, which is conditional upon, among other things, the obtaining of the Whitewash Waiver (which has been obtained on 1 November 2012) by the Underwriters and parties acting in concert with any of them, subsequently took place on 13 November 2012.

Upon Intralot Disposal Completion, Gain Advance had ceased to be a subsidiary of the Company and Precious Success had become an indirect 51% subsidiary of the Company. Upon GCH Disposal Completion, Oasis Rich had ceased to be a subsidiary of the Company.

References are made to the circular of MelcoLot Limited (the “ Company ”) dated 26 September 2012 (the “ Circular ”) and the prospectus of the Company dated 24 October 2012 (the “ Prospectus ”). Unless otherwise stated, capitalised terms used herein shall bear the same meanings as defined in the Circular and the Prospectus.

RESULTS OF THE OPEN OFFER

The Board is pleased to announce that all of the conditions set out in the Underwriting Agreement have been fulfilled at 6:00 p.m. on Monday, 12 November 2012. Accordingly, the Open Offer became unconditional.

At 4:00 p.m. on Wednesday, 7 November 2012, being the Latest Time for Acceptance, a total of 9 valid acceptances in respect of 233,700,484 Offer Shares provisionally allotted under the Open Offer were received, representing approximately 15.5% of the total number of the Offer Shares available for subscription under the Open Offer. Based on the above acceptance results, the Open Offer was under-subscribed by 1,275,200,315 Offer Shares, representing approximately 84.5% of the total number of 1,508,900,799 Offer Shares. Pursuant to the Underwriting Agreement, the Underwriters had agreed to underwrite, in aggregate, up to 1,273,566,615 Offer Shares. Each of Melco LV and Power Way had accepted to take up 128,205,128 Untaken Shares and 1,145,361,487 Untaken Shares respectively. Accordingly, the Open Offer is not fully underwritten. There is a total of 1,633,700 Offer Shares not being subscribed.

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SHAREHOLDING STRUCTURES OF THE COMPANY

The shareholding structures of the Company (i) as at the date of this announcement and immediately before completion of the Open Offer; and (ii) after completion of the Open Offer are as follow:

Shareholders
Whitewash Waiver
applicants and their
respective concert parties
Melco LV
Power Way
Intralot
Firich(1)
GCH(2)
Other(3)
Sub-total
Directors and directors
of the Group and their
respective associates(4)
Other Shareholders(4)
Total
Public Shareholders(1), (2), (5)
As at the date of this
announcement and
immediately
before completion of the
Open Offer
Approx.
% of
No. of
issued
Shares
Shares
58,674,619
11.67%

0.00%
52,973,779
10.53%
12,977,498
2.58%
20,787,042
4.13%
48,000
0.01%
145,460,938
28.92%
78,664,000
15.64%
278,841,995
55.44%
502,966,933
100.00%
291,867,493
58.03%
Immediately
after completion of the
Open Offer
Approx.
% of
No. of
issued
Shares
Shares
186,879,747
9.30%
1,145,361,487
56.98%
52,973,779
2.63%
51,909,992
2.58%
53,787,042
2.68%
48,000
0.00%
1,490,960,047
74.17%
79,712,500
3.96%
439,561,485
21.87%
2,010,234,032
100.00%
545,306,519
27.13%
Immediately
after completion of the
Open Offer
Approx.
% of
No. of
issued
Shares
Shares
186,879,747
9.30%
1,145,361,487
56.98%
52,973,779
2.63%
51,909,992
2.58%
53,787,042
2.68%
48,000
0.00%
1,490,960,047
74.17%
79,712,500
3.96%
439,561,485
21.87%
2,010,234,032
100.00%
545,306,519
27.13%
74.17%
3.96%
21.87%
100.00%
27.13%

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Notes:

  • (1) As Firich is not a connected person of the Company as defined under the GEM Listing Rules, Firich is a public Shareholder.

  • (2) GCH is wholly owned by Mr. Chang, a former employee of Firich. As GCH is not a connected person of the Company upon GCH Disposal Completion as defined under the GEM Listing Rules, GCH is a public Shareholder upon GCH Disposal Completion and completion of the Open Offer.

  • (3) “Other” under the “Whitewash Waiver applicants and their respective concert parties” category represents the spouse of a director of Power Way, who was not a Director or a director of members of the Group immediately before completion of the Open Offer.

  • (4) A director of Oasis Rich owned 192,000 Shares immediately before completion of the Open Offer. Upon GCH Disposal Completion and completion of the Open Offer, the director will no longer be a director of the Group and the Shares held by such director will be classified under the category of “Other Shareholders”.

  • (5) Public Shareholders comprise Firich, GCH, “Other” under the “Whitewash Waiver applicants and their respective concert parties” category and other Shareholders, except for GCH being a nonpublic Shareholder immediately before completion of the Open Offer.

DESPATCH OF SHARE CERTIFICATES AND COMMENCEMENT OF DEALINGS IN THE OFFER SHARES

It is expected that the share certificates for the Offer Shares in respect of the valid acceptances of the Offer Shares under the Application Form will be despatched to those relevant Shareholders’ addresses (as shown on the register of members of the Company) by ordinary post on or before Wednesday, 14 November 2012 at their own risks.

Dealings in the Offer Shares are expected to commence on Thursday, 15 November 2012.

ADJUSTMENTS TO THE 2012 CONVERTIBLE BONDS AND THE SHARE OPTIONS

Upon the Open Offer becoming unconditional on Monday, 12 November 2012 and pursuant to the instrument of the 2012 Convertible Bonds, the conversion price of the 2012 Convertible Bonds was adjusted from HK$0.85 per Conversion Share to HK$0.70 per Conversion Share. As a result, the maximum number of Conversion Shares to be allotted and issued upon the exercise of conversion rights attached to the outstanding 2012 Convertible Bonds has increased from 507,778,157 Shares to 616,587,762 Shares.

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Similarly, upon the Open Offer becoming unconditional on Monday, 12 November 2012 and pursuant to the terms of the share option scheme of the Share Options, the exercise price of the Share Options and the number of Shares to be allotted and issued upon exercise of the subscription rights attaching to the outstanding Share Options were adjusted in the manner set out below:

Exercisable
Date of grant
period
20.2.2003
20.2.2004 to
19.2.2013
12.1.2007
12.1.2008 to
11.1.2017
31.3.2008
1.10.2008 to
31.3.2018
16.2.2009
16.2.2010 to
15.2.2019
10.7.2009
10.7.2010 to
9.7.2019
18.11.2010
18.5.2011 to
17.11.2020
Total
Before completion of
the Open Offer
Exercise
Number of
price per
Shares to
Share to
be issued
be issued
(HK$)
1,200,000
0.138
1,275,000
0.088
25,509,000
0.890
11,500,000
0.300
29,955,000
0.367
37,240,000
0.152
106,679,000
After completion of
the Open Offer
Exercise
Number of
price per
Shares to
Share to
be issued
be issued
(HK$)
1,572,360
0.105
1,670,633
0.067
33,424,443
0.679
15,068,450
0.229
39,250,037
0.280
48,795,572
0.116
139,781,495

The auditors of the Company had confirmed in writing the mathematical accuracy of the calculation of the adjustments of the conversion price of the outstanding 2012 Convertible Bonds, the exercise price of the Share Options and the number of Shares to be allotted and issued upon exercise of the subscription rights attaching to the outstanding Share Options. The Company will inform each holder of the outstanding 2012 Convertible Bonds and the outstanding Share Options of these adjustments.

COMPLETIONS OF THE INTRALOT DISPOSAL, THE GCH DISPOSAL, THE CB REPURCHASES AND THE OPEN OFFER

The Board is pleased to announce that all conditions precedent set out in the Disposal Agreements and the Underwriting Agreements have been fulfilled at 6:00 p.m. on

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Monday, 12 November 2012. GCH Disposal Completion and completions of the repurchase of the GCH 2012 Convertible Bonds took place in the late evening on 12 November 2012. Intralot Disposal Completion, completion of the repurchase of the Intralot 2013 Convertible Bonds and completion of the Open Offer, which is conditional upon, among other things, the obtaining of the Whitewash Waiver (which has been obtained on 1 November 2012) by the Underwriters and parties acting in concert with any of them, subsequently took place on 13 November 2012.

Upon Intralot Disposal Completion, Gain Advance had ceased to be a subsidiary of the Company and Precious Success had become an indirect 51% subsidiary of the Company. Upon GCH Disposal Completion, Oasis Rich had ceased to be a subsidiary of the Company.

By Order of the Board MelcoLot Limited Ko Chun Fung, Henry Executive Director and Chief Executive Officer

Hong Kong, 13 November 2012

As at the date of this announcement, the Board consists of one executive Director, namely Mr. Ko Chun Fung, Henry, two non-executive Directors, namely Mr. Chan Sek Keung, Ringo (Chairman) and Mr. Wang, John Peter Ben, and three independent nonexecutive Directors, namely Mr. Tsoi, David, Mr. Pang Hing Chung, Alfred and Mr. So Lie Mo, Raymond.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

The Directors jointly and severally accept full responsibility for the accuracy of the information contained in this announcement, and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement, have been arrived at after due and careful consideration, and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

This announcement will remain on the “Latest Company Announcements” page of the GEM website at www.hkgem.com for a minimum period of 7 days from the date of its publication and on the Company’s website at www.melcolot.com.

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