CHINA: Loulan seeks funds through placement
Incorporated in the Cayman Islands, Loulan is offering 100m new shares to professional and institutional investors at HK$0.50 per share. The 100m shares will represent 25% of the company's enlarged share capital.
Loulan posted a net loss of CNY1.05m on sales of CNY23.05m in 2001, against a net profit of CNY2.22m on turnover of CNY25.23m the year before.
The company expects the net proceeds from the issue to be HK$38.5m. Some HK$12m is to be used for the acquisition of distributors or establishment of joint ventures, while HK$3m will go towards setting up sales offices. A further HK$3m is earmarked for marketing and promotion, with around HK$10m to be used to buy vineyards and wineries. With HK$5m to be spent on an additional bottling line and other machinery, the balance of HK$5.5m is to be retained as general working capital.
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