09:22 CHINA UNITED<00273>-Announcement & Resumption of Trading(11) Convertible Notes are placed up to underwritten principal amount of HK$100 million only, the net proceeds of the Placing will be approximately HK$97 million, which will be used as to approximately HK$55 million to redeem the Existing Convertible Notes (with accrused interest) and the balance of approximately HK$42 million to fund the cash portion of the New Found Macau Loan. FUND RAISING ACTIVITIES BY THE COMPANY DURING THE PAST 12 MONTHS The Company issued the Existing Convertible Notes, details of which are mentioned in the Company's announcements dated 11th June, 23rd July and 9th November, 2004. The net proceeds of the issue of the Existing Convertible Notes was approximately HK$53.7 million. The net proceeds were used for reducing the borrowing of the Company. The Company placed 17,640,000 new shares at HK$0.24 per Share, as referred to in the Company's announcement dated 29th November, 2004. The net proceeds of the placing was HK$4 million. The net proceeds were to be used for general working capital purposes. Save as for the above, there have been no equity fund raising activities conducted by the Group in the past 12 months. The Board (including the independent non-executive directors) consider that the terms of the Placing Agreement, which were entered after arm's length negotiation between the Company and the Placing Agent, to be on normal commercial terms and that such terms are fair and reasonable and in the interest of the Shareholders and the Company as a whole. A circular containing details of the Transactions, including notice of the EGM and the advice of an independent financial adviser on the FM Transactions will be despatched to Shareholders as soon as practicable. Save and except for Unity, Filipe Lau and their respective Associates, there is no shareholder with a material interest in the FM Transactions and the Placing which is required to abstain from voting. Radford Developments Limited (see note 2 of the section headed `Shareholding Structure' above) does not have any material interest in the FM Transactions and the Placing but has indicated to the Company that it is the intention of the trust which controls Radford Developments Limited that it will abstain from voting on the resolutions relating to the FM Transactions and the Placing proposed at the EGM on the grounds that it is sensitive business decision and will let minority shareholders to vote on this matter at the EGM. RESUMPTION OF TRADING At the request of the Company, trading in the Shares on the Stock Exchange was suspended with effect from 10:14 a.m. on 4th January, 2005 pending the release of this announcement. Application has been made by the Company for the resumption of trading in the Shares on the Stock Exchange with effect from 9:30 a.m. on 13th January, 2005. DEFINITIONS The following terms are used in this announcement within the meanings set opposite them:- `Alpha Aim' Alpha Aim International Limited, a company incorporated in the British Virgin Islands on 18th November, 2004 and a wholly-owned subsidiary of the Company; `Associates' has the meaning ascribed thereto in the Listing Rules; `Board' the Board of directors of the Company; `Company' China United International Holdings Limited, a company incorporated in Hong Kong the shares of which are listed on the Stock Exchange; `Connected Person(s)' has the meaning ascribed thereto in the Listing Rules; `Conversion Price' the initial conversion price of the New Convertible Notes of HK$0.25 per Share (subject to adjustment as provided in the terms and conditions of the New Convertible Notes); `Conversion Shares' such number of new Shares to be issued upon the exercise of the conversion rights attaching to the New Convertible Notes; `Directors' the directors of the Company; `Disposal' the disposal of 10 FM Shares by Alpha Aim to Filipe Lau on 11th January, 2005; `EGM' the extraordinary general meeting of the Company to be held to approve the