KINGHERO AG
KINGHERO AG resolves Capital Increase to promote Growth
KINGHERO AG / Key word(s): Capital Increase 04.05.2011 / 08:32 Munich, May 4, 2011. The Management Board of KINGHERO AG, the German holding company of a fast-growing Chinese fashion company, decided with the approval of the Supervisory Board to carry out a capital increase for cash by up to EUR 875,000.00 to EUR 7,000,000.00 by issuing up to 875,000 new shares and partially using the authorised capital. The new shares shall carry dividend rights as of 1 January 2010. Within the scope of the rights issue, the shareholders can presumably subscribe the new shares in a ratio of 7:1 (every seven existing shares entitle to subscribe for one new share) from 9 May to 23 May 2011 at the subscription price of EUR 23.00 per new share. Beyond the legal subscription right, shareholders are granted oversubscription rights. At the same time, all shares that are not subscribed based on the legal subscription rights will be offered to interested investors at the subscription price through a private placement. There will be no stock market trading of the subscription rights. The expected gross proceeds amounting up to EUR 20.13 million are to be used to establish further flagship stores. In particular, due to the cooperation agreement with PCD stores Group Ltd., KINGHERO has the possibility to significantly expand the number of the flagship stores in highly frequented and exclusive luxury shopping malls. Through this step, the company anticipates not only high-margin revenue increases, but also an improvement of the brand management as well as a positive image transfer through immediate vicinity to leading international fashion brands. By raising the new funds, KINGHERO is capable of opening around 30 additional flagship stores in 2011 and another 20 flagship stores in 2012. The furnishing and opening of each flagship store requires liquidity of approx. EUR 400,000. Next to the significant margin improvement of the corresponding sales in particular due to the brand management at the point of sale, the successful market penetration with own, closely monitored flagship stores has an outstanding strategic importance for the company. Because the company needs a running liquidity reserve of approximately EUR 20 million in order not to put the established distribution channels at risk, the expansion of the flagship stores can only partially be financed from liquid funds (as at 31.12.2010: EUR 32 million). BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG was comissioned as Sole Bookrunner and BankM and Silvia Quandt & Cie. AG will act as Joint Lead Managers for the capital increase. The complete subscription offer is expected to be published on 4 May 2011 in the electronic Federal Gazette ('elektronischer Bundesanzeiger') as well as on the website of the company (www.kinghero.de). About KINGHERO AG KINGHERO AG is the German Holding Company of the KINGHERO Group of companies, mainly active in the Peoples Republic of China (PRC). The Group is a strongly growing apparel manufacturer and designer, featuring a leading Chinese fashion brand for the strongly growing urban middle class in China. The key to the Company's success is a high fashion degree with a European 'touch and feel' as well as an upscale quality. The high speed of the design and marketing of new collections ensures a fit to the changing demands of the growing urban middle class in China. Being in this business for more than 25 years, the group and its more than 1,000 employees produce attire for all seasons under the KINGHERO brand. The product portfolio includes suits, jackets, shirts, pants and sweaters for men and women and is divided into a business casual range and a general casual range. For further information please contact: Kirchhoff Consult AG Dr. Kay Baden Phone: +49 (0)40 60 91 86 0 baden@kirchhoff.de KINGHERO AG Montenstr. 11 80639 Munich Germany Phone: +49 (0)89 12 71 13 29 xiaoping.zhao-moll@kinghero.de Disclaimer This document is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares of KINGHERO AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act') and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the United States and the Shares will not be registered under the Securities Act. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 04.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KINGHERO AG Montenstr. 11 80639 München Deutschland Phone: 089 - 127 11 329 Fax: 089 - 127 11 313 E-mail: contact@kinghero.de Internet: www.kinghero.de ISIN: DE000A0XFMW8 WKN: A0XFMW Listed: Freiverkehr in Düsseldorf, Hamburg, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service --------------------------------------------------------------------- 122857 04.05.2011
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