Imagi: Update on Possible Investment in the Company and Progress of RestructuringJan 26th 2010
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.
(Incorporated in Bermuda with limited liability) (Stock Code: 00585)
UPDATE ON POSSIBLE INVESTMENT IN THE COMPANY AND PROGRESS OF RESTRUCTURING
The Company is still in discussions with various potential investors in regards to a possible investment in the Company and further announcements will be made as appropriate. As part of a review of operations as required by the potential investors, the Company has withdrawn funding from its United States subsidiaries and the United States office has now been closed.
As the potential investment in the Company may or may not take place, Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
POSSIBLE INVESTMENT IN THE COMPANY
Reference is made to the Company's announcements dated 30 December 2009 and 20 January 2010.
The Company is still in discussions with various potential investors in regards to a possible investment in the Company. These discussions are ongoing and no definitive agreement has been reached or entered into. Further updates and announcements will be made where appropriate in accordance with the Listing Rules.
PROGRESS ON RESTRUCTURING
As noted in the Company's announcement dated 20 January 2010, the Company is in the process of carrying out a major review of operations, as a response to the requirements of potential investors. As part of this exercise, with effect from 25 January 2010, the Company has withdrawn funding support from its United States subsidiaries in order to safeguard working capital. The Company has terminated the employment contracts of approximately 30 staff, and the United States office in Los Angeles has now been closed. Certain work previously undertaken by the United States office will now be sourced through subcontracting arrangements. In addition, we have retained a small number of key staff as consultants. As the potential investment in the Company may or may not take place, Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company. If the possible investment in the Company does not successfully complete and/or the Company is unable to obtain other funding, the Company may be unable to meet its financial obligations and its ability to operate as a going concern in such circumstances would be in doubt.
Made by the order of the Board of the Company, the Directors of which individually and jointly accept responsibility for the accuracy of this announcement.
By order of the Board
Imagi International Holdings Limited
Mr. Phoon Chiong Kit
Deputy Chairman and Chief Executive Officer
Hong Kong, 26 January 2010
As at the date of this announcement, the executive director of the Company is Mr. Phoon Chiong Kit. The non-executive director of the Company is Mr. William Montgomerie Courtauld. The independent non-executive director of the Company is Mr. Ng See Yuen.