09:14 HANSOM EASTERN<00279> - Announcement & Resumption (1) The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HANSOM EASTERN (HOLDINGS) LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 279) PLACING OF NEW SHARES UNDER GENERAL MANDATE RESUMPTION OF TRADING On 7th January, 2005, the Company has conditionally agreed to place, through the Placing Agent, 300,000,000 new Shares to independent investors at a price of HK$0.04 per Share. The Placing is fully underwritten by the Placing Agent. The Placing Shares represent approximately 8.06% of the existing issued share capital of the Company of 3,721,124,045 Shares and approximately 7.46% of the Company's issued share capital as enlarged by the Placing. The net proceeds from the Placing of approximately HK$11.6 million will be used by the Group for general working capital purposes. The Placing is conditional upon the Listing Committee of the Stock Exchange granting listing of and permission to deal in the Placing Shares. The Placing is subject to termination on the occurrence of certain events, set out in greater detail below, at any time before completion of the Placing Agreement. Trading in the shares of the Company on the Stock Exchange was suspended at the request of the Company with effect from 10:50 a.m. on 7th January, 2005 pending the release of this announcement. The Company has applied to the Stock Exchange for a resumption of trading in its shares with effect from 9:30 a.m. on Monday, 10th January, 2005. Placing Agreement dated 7th January, 2005 Placing Agent: The Placing Agent will receive a placement commission of 2.25% on the gross proceeds of the Placing. The Placing Agent is not a connected person (as defined in the Listing Rules) of the Company. Placees: The Placing Shares will be placed to not less than six placees (which are required to be independent individual, corporate and/or institutional investors) who will not be connected persons (as defined in the Listing Rules) of the Company. The Company expects that no placee will become a substantial shareholder as a result of the Placing. Shareholding structure: The shareholding structure of the Company as at the date of this announcement is as follows:- Shareholding after Existing shareholding completion of the Placing Percentage of Percentage of existing total enlarged total issued share issued share Number of capital of Number of capital of Shareholders Shares held the Company Shares held the Company Multiple Wealth International Limited (Note) 192,318,000 5.17% 192,318,000 4.78% Pacific Rim Investment Management Enterprises Limited (Note) 534,600,000 14.37% 534,600,000 13.30% Public 2,994,206,045 80.46% 3,294,206,045 81.92% Total 3,721,124,045 100% 4,021,124,045 100% Note: Ms. Yau Shum Tek, Cindy, an executive director of the Company, wholly owns and controls Red China Holdings Limited and Capital Sun Industries Limited. Capital Sun Industries Limited wholly owns Future Star Group Limited. Each of Red China Holdings Limited and Future Star Group Limited holds 50% of the issued share capital of Mainland Talent Developments Limited. Mainland Talent Developments Limited wholly owns Hastings Gold Limited which in turn wholly owns each of Multiple Wealth International Limited and Pacific Rim Investment Management