HONG KONG — Mandarin Entertainment, the mini-conglom responsible for Donnie Yen starrer “Dragon Tiger Gate,” has called for a funding lifeline of up to HK$153 million ($19.6 million).
The open offer to existing shareholders is the third and by far the largest funding call that Mandarin has made in the past 12 months.
Company aims to sell new shares representing approximately twice its existing equity base. To entice shareholders to take up the offer, the new shares are being sold at HK$0.10 each, representing a massive 78% discount to the average price last week.
Mandarin says $17.7 million of the proceeds will go to paying off debts and covering the risks of litigation associated with its recent property acquisition in Chengdu, China.
Company lost $5.13 million in the last financial year. Proceeds of most of the two previous funding rounds went to expanding the property portfolio through the Chengdu purchase in April.
In addition to movie production and distribution, Mandarin owns a film lab and an advertising and marketing company.