Rexlot to raise $600m through share accord, convertible bond

Rexlot Holdings said it will raise about HK$600 million in net proceeds from a share subscription accord and convertible bond issue.

The proceeds from the transaction will be used to repay the company’s existing loans and for general working capital, the company, which is involved in the lottery industry in China, said in a release to the Hong Kong Stock Exchange.

“The board believes that after the completion and repayment of the existing loans, the company will be able to strengthen its capital structure and resume a sound financial position underpinned by improved overall cash flow, gearing and liquidity position which will allow the company to pursue its business strategy and re-focus the group on growing its business in the long-run,” it said.