09:28 FORTUNA INT'L<00530>-Announcement&Resumption of Trading (4) 3. Ms. Lu Siu Bo ("Ms. Lu") is a director of a subsidiary of the Company. Apart from the above, 719,012,200 Shares beneficially held by Ms. Lu personally, Ms. Lu and Mr. Ng Po Hing (Mr. Ng"), the spouse of Ms. Lu, are entitled to subscribe for 70,000,000 Shares and 30,000,000 Shares are respectively under the options granted to them under the share option scheme of the Company. Therefore, Ms. Lu is deemed to be interested in the 819,012,200 Shares. As at the date of this announcement, the option granted to Ms. Lu and Mr. Ng are still outstanding. USE OF PROCEEDS The net proceeds from the Top-Up Subscription are about HK$17.1 million and will be used for general working capital of the Group and investment funding to the Group on possible future acquisition. As at the date of this announcement, no concrete plans or types of business of such possible acquisition have been reached or identified. Further announcement will be made should there be any development of such possible acquisition. The net proceeds raised per Top-Up Subscription Shares will be approximately HK$0.0146 per Share. The Company will bear an aggregate expenses and costs of approximately HK$0.45 million incurred in relation to the Placing and the Top-Up Subscription. GENERAL The Company is an investment holding company. The Group is principally engaged in (i) cosmetic and skin care products distribution business; (ii) diamond trading; (iii) investment in properties; (iv) general trading; (v) provision of advertising services and (vi) wine distribution business in the PRC. The 1,170,000,000 Top-Up Subscription Shares will be allotted and issued pursuant to the general mandate to allot, issue and deal with Shares granted to the Directors by a resolution passed at the special general meeting of the Company held on 8 September 2004. As at the date of this announcement, there is no buy back of Shares in the preceding month. Fund raising in the 12 months immediately preceding the date of this announcement Description Rights Issue of 3,993,409,113 rights Shares at subscription price of HK$0.01 each as per the terms under the underwriting agreement dated 27 October 2003 The underwriting agreement became unconditional on 23 December 2003 Placing of existing Shares and subscription of new Shares pursuant to a placing and subscription agreement dated 7 July 2004 Announcement date 29 October 2003 8 July 2004 Amount of net proceeds raised About HK$39 million About HK$10.64 million Date of mandates granted - 3 June 2004 Intended use of proceedsas announced As general working capital of the Group and investment funding for expanding the Group's business As general working capital of the Group and investment funding for expanding the Group's business