GUANGZHOU, China, July 26, 2013 (GLOBE NEWSWIRE) -- China Mobile Games and Entertainment Group Limited ("CMGE" or the "Company") (Nasdaq:CMGE), a leading mobile game company in China, today announced that it has entered into an agreement with Champion Plus Group Limited, a subsidiary of Zennon Capital Partners, L.P., and Grand Synergy Limited, a subsidiary of New World Strategic Investment Limited, to sell in a private placement an aggregate of 2,500,000 American depositary shares ("ADSs") of the Company at US$10.00 per ADS for gross proceeds of US$25 million, before deducting offering expenses. The ADSs will be subject to a 180-day lock-up period. Champion Plus Group Limited will also receive warrants to purchase up to an aggregate of 100,000 ADSs of the Company that are exercisable at any time commencing six months after the closing date and over a two year period.
Closing of the transactions is subject to customary closing conditions and is to take place within ten days of the signing.
The Company plans to use the net proceeds from these transactions for product development, R&D enhancement, market promotion activities, expanding sale and distribution channels and general corporate purposes."We are pleased to welcome Zennon Capital Partners and New World Strategic Investment Limited as our investors," commented Mr. Ken Jian Xiao, CMGE's Chief Executive Officer. "We believe that the relationships and experience of these two investors, particularly in the TMT sector, will benefit us in our future business development activities and in identifying potential financial and strategic partners." About Champion Plus Group Limited Champion Plus Group Limited, a company incorporated in the British Virgin Islands, is an investment holding company and a wholly-owned subsidiary of Zennon Capital Partners, L.P., a private equity fund incorporated in the Cayman Islands. About Grand Synergy Limited Grand Synergy Limited, a company incorporated in the British Virgin Islands, is an investment holding company and a wholly-owned subsidiary of New World Strategic Investment Limited, which is in turn a wholly-owned subsidiary and the direct investment arm of New World Development Company Limited (HKSE:00017), shares of which are listed on the Main Board of The Stock Exchange of Hong Kong Limited.