09:28 LAI SUN INT'L<00191>-Announcement&Resumption of Trading (7) The Directors consider that the Rights Issue will strengthen the capital base and the financial position of the Group. The Directors also consider that the most appropriate and equitable means of raising the required capital is by way of a rights issue, which enables all Shareholders to participate in the future development of the Group on equal terms. The net proceeds of the Rights Issue are estimated to be approximately HK$85.8 million (on the basis that all 179,713,713 new Shares will be issued under the Rights Issue). It is currently intended that approximately 35% of the net proceeds of the Rights Issue will be dedicated for consultancy and development planning expenses for the Group's property project situated at the junction of Da Tong Road and Zhi Jiang Xi Road, Su Jia Xiang, Zhabei, Shanghai, PRC by way of either shareholder's loan or injection of capital to the equity joint venture company which owns this project and in which the Group has a 95% equity interest. This project will be developed into a commercial and residential complex with gross floor area of approximately 135,000 sq.m. for re-sale and/or rental, to be determined by the Group. The remaining 5% of the interest in such equity joint venture company is owned by a PRC joint venture party and to the best of the Directors' knowledge, information and belief having made all reasonable enquiry, the PRC joint venture partner and its ultimate beneficial owner are third parties independent of and not connected persons of the Company. Both land and resettlement costs in the aggregate amount of approximately RMB228 million (equivalent to approximately HK$215 million) have already been paid in full. The building plans have been submitted to the relevant authorities for approval; it is envisaged that approval for the building plans will be obtained within the next few months and construction work will start as soon as practicable. The remaining 65% of the net proceeds from the Rights Issue will be used as additional working capital for the Group. The Company had not implemented any fund raising exercise within the 12-month period prior to the date of the Underwriting Agreement and the date of this announcement respectively. EXPECTED TIMETABLE OF THE RIGHTS ISSUE The expected timetable for the Rights Issue is set out below: 2005 Last day of dealings in Shares on a cum-rights basis (Monday) 30th May First day of dealings in Shares on an ex-rights basis (Tuesday) 31st May Latest time for lodging transfers of Shares in order to qualify for the Rights Issue 4:30 p.m. (Wednesday) 1st June Book closure period (both days inclusive) (Thursday) 2nd June to (Wednesday) 15th June Record Date (Wednesday) 15th June Prospectus Documents expected to be despatched on (Wednesday) 15th June First day of dealings in nil-paid Rights Shares (Friday) 17th June Latest time for splitting nil-paid Rights Shares 4:30 p.m. (Tuesday) 21st June Last day of dealings in nil-paid Rights Shares (Friday) 24th June Latest time for acceptance of and payment for Rights Shares 4:00 p.m. (Wednesday) 29th June Rights Issue expected to become unconditional on or before 5:00 p.m. (Monday) 4th July Announcement of results of the Rights Issue and excess application (Wednesday) 6th July Refund cheques in respect of wholly or partially unsuccessful applications for excess Rights Shares expected to be despatched on or before (Thursday) 7th July Certificates for fully-paid Rights Shares expected to be despatched on or before (Thursday) 7th July Dealings in fully-paid Rights Shares expected to commence on (Monday) 11th July Dates or deadlines specified in this announcement for events in the timetable for (or otherwise in relation to) the Rights Issue are indicative only and may be extended or varied by the Company. Any changes to the anticipated timetable for the Rights Issue will be published or notified to Shareholders appropriately. The Rights Issue does not require approval from the Shareholders of the Company. GENERAL Resumption of Trading of Shares