The Placement to strategic investor CMC Holdings (“CMC”) and other institutional and financial investors is part of the Company’s efforts to institutionalise its investor base and increase liquidity.
The net proceeds from new shares raised by Cityneon will help to boost its wholly-owned subsidiary Victory Hill Exhibitions’ (“VHE”) growth and expansion plans in China. VHE is planning to launch new immersive attractions in China, which it views as a key market in Asia.
Mr Ron Tan, Executive Director of Cityneon as well as CEO & President of VHE commented: “This strategic investment by CMC marks an important step of what we envisage will be a rewarding partnership. It also reflects the strategic importance of China to the Group’s growth and follows hot on the heels after our announcement about the Transformers experience launch in China together with Beijing Starclouds Entertainment Development Co Ltd. We see China as a very exciting growth market for our immersive attractions, which have to date been well received worldwide.”
The strategic investment by CMC enhances collaboration opportunities between the two entities. CMC is founded and chaired by Li Ruigang and is a prominent media and entertainment investment and operating platform in China with high-profile portfolio across the world. CMC’s investments include IMAX China which is listed in Hong Kong and a majority stake in Star China. CMC is the majority joint venture partner of DreamWorks Animation in Oriental DreamWorks which launched Kung Fu Panda 3 in China early this year; of Warner Brothers and TVB in Flagship Entertainment Group which launched 12 movie projects this year.