09:32 UNITY INV HOLD<00913>-Announcement&Resumption of Trading(7) Fund raising activity of the Company in the 12 months immediately preceding the date of this announcement Intended use Announcement Date of general of proceeds Actual use of Description date Net proceeds mandates granted as announced proceeds Rights Issue 02.11.2004 Approximately N/A Repayment of Repaid outstanding HK$12.2 million outstanding interest interest-bearing bearing borrowings borrowings and and future investments possible investments Placing 10.01.2005 Approximately 30.04.2004 Use of the general Used as general HK$2.18 million working capital working capital GENERAL The Group is an investment holding company listed pursuant to Chapter 21 of the Listing Rules and the principally engaged in investment in listed and unlisted companies in Hong Kong and in the PRC. The Directors consider that the terms of the Share Placing Agreement and the CN Placing Agreement are fair and reasonable and in the interests of the Company and the Shareholders as a whole. The issue of Conversion Shares falling to be issued upon exercise of the conversion rights attached to the Convertible Notes are subject to the independent Shareholders' approval at the EGM. As at the date of this announcement, the Company does not have any substantial shareholders (as defined in the Listing Rules) and no Directors and their respective associates hold any Shares. A circular containing, amongst other things, further details of the CN Placing, together with notice of EGM will be despatched to the Shareholders as soon as practicable. An independent board committee comprising the independent non-executive directors of the Company will be established to consider the CN Placing and to advise the independent Shareholders regarding the CN Placing. An independent financial adviser will be appointed to advise the independent Shareholders regarding the CN Placing. At the request of the Stock Exchange and pursuant to Rule 13.64 of the Listing Rules, the Company will publish an announcement regarding, among others, consolidation of the Shares. Further details of the consolidation of the Shares will be set out in the announcement to be published by the Company. Trading in the Shares has been suspended at the request of the Company with effect from 9:30 a.m. on 17 May 2005 pending the release of this announcement. Application has been made on the Stock Exchange for a resumption of trading in the Shares with effect from 9:30 a.m. on 23 May 2005. Terms and definitions "associate" has the meaning ascribed thereto under the Listing Rules "Board" the board of Directors "Business Day" any day (excluding Saturday or Sunday) on which commercial banks are generally open for normal banking business in Hong Kong "CN Placing" the conditional placing of the Convertible Notes pursuant to the CN Placing Agreement "CN Placing Agreement" the conditional placing agreement dated 19 May 2005 and entered into between the Company and the Placing Agent in relation to the CN Placing "Company" Unity Investments Holdings Limited, a company incorporated in the Cayman Islands with limited liability and the Shares are listed on the Stock Exchange "Conversion Shares" the new Shares to be issued by the Company upon the exercise of the conversion rights attaching to the Convertible Notes by the holders thereof "Convertible Notes" the convertible notes to be issued by the Company in the aggregate principal amount of HK$20 million and each being a "Convertible Note"