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US$10.4 million Richina rights issue closes

Friday 30th May 2003

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Richina Pacific has completed its one for one rights issue and raised US$10.4 million to settle debt and fund working capital for its fast growing leather manufacturing operations in Shanghai.

Subscriptions were received for US$7.7million worth of new shares, with the remaining US$2.7 million coming from the company's largest shareholder and underwriter of the issue, Richina Enterprise Holdings Limited (REHL).

As a consequence, REHL's interest in Richina Pacific has increased from 25.5% to 38.5%.

Directors were pleased with the overall uptake at 74%, with acceptances from New Zealand investors being almost 100%.

The injection of additional equity into the company will materially assist in reducing debt and interest cost and assist Richina to take advantage of the growth opportunities that exist in the global leather market.

The rights issue resulted in the company issuing 72.19 million new ordinary shares, increasing the number of ordinary shares on issue to 144.38 million.

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