Xinhua Sports & Entertainment
shares tumbled Monday on above-average volume after the Chinese company announced a direct offering to sell American depositary shares.
Xinhua Sports & Entertainment said it will sell 5.5 million American depositary shares at a price of $1.36 in a registered direct offering to several select institutional investors, representing gross proceeds of $7.5 million. Xinhua Sports & Entertainment will use the net proceeds from the offering for working capital purposes.
Investors will also receive two series of warrants to purchase up to an aggregate of 14.9 million class A common shares of the sports and entertainment media company, which is equivalent to approximately 7.4 million American depositary shares.
Shares of Xinhua Sports & Entertainment were falling by 45 cents, or 26%, to $1.28. Earlier in the session, the stock touched an intraday low of $1.20. More than 1.2 million shares changed hands by 3:30 p.m. EDT Monday, compared to the stock's 50-day average daily volume of 217,000, according to the
-- Written by Robert Holmes in New York
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