New Issue: Xinhua plans $7.5 million direct offering of American Depositary Shares

By Devika Patel

Knoxville, Tenn., Oct. 26 - Xinhua Sports & Entertainment Ltd. said it has arranged a registered direct offering of American Depositary Shares for $7.5 million. Rodman & Renshaw, LLC is the agent.

The company will sell 5,514,705 ADS at $1.36 apiece. The investors also will receive warrants for 14,889,703 class A common shares. The series A warrants, for 3,860,293 shares, are exercisable at $0.975 for five years. The series B warrants, for 11,029,410 shares, are exercisable at $0.68 for six months.

Settlement is expected Oct. 29.

Proceeds will be used for working capital purposes.

Xinhua is a diversified media company in Beijing, China.

Issuer:	Xinhua Sports & Entertainment Ltd.
Issue:	American Depositary Shares
Amount:	$7.5 million
Units:	5,514,705
Price:	$1.36
Warrants:	For 14,889,703 shares (3,860,293 series A warrants and 11,029,410 series B warrants)
Warrant expiration:	Five years (series A), six months (series B)
Warrant strike price:	$0.975 (series A), $0.68 (series B)
Agent:	Rodman & Renshaw, LLC
Pricing date:	Oct. 26
Settlement date:	Oct. 29
Stock symbol:	Nasdaq: XSEL
Stock price:	$1.73 at close Oct. 23
Market capitalization:	$97.7 million

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