BEIJING, July 14 /PRNewswire-Asia-FirstCall/ --
Xinhua Sports & Entertainment
Limited (Nasdaq: XSEL), announced today that it has entered into an
agreement (the "Amendment") to restructure the terms of its secured
convertible loan facility with affiliates of Patriarch Partners LLC
("Patriarch"), a global investment firm based in New York. Under the terms of the Amendment,
the Company repaid $16,343,960, and
Patriarch agreed to lend the Company an additional $7.6 million non-convertible term loan, bringing
the aggregate amount outstanding under the Patriarch facility to
$49,056,040.00, and to waive all
existing defaults and revise the terms of the financial covenants.
As a part of the transaction, in consideration for the waiver and
extension of additional loans in the Amendment, Patriarch has been
granted additional security in the Company's assets as collateral
for the loans and the Company issued to affiliates of Patriarch
Series C Preferred Shares convertible into 25% of the fully diluted
common equity of the Company and paid certain fees and
expenses.
For more information:
Media Contact
Joy Tsang, XSEL
Tel: +852-2561-3054
Email: joy.tsang@xsel.com
IR Contact
Graham Earnshaw, XSEL
Tel: +86-10-8567-6061
Email: graham.earnshaw@xsel.com
Howard Gostfrand, American Capital Ventures
Tel: +1-305-918-7000
Toll free: +1-877-918-0774
Email: info@amcapventures.com
About XSEL
XSEL is a leading sports and entertainment media company in
China. Catering to a vast audience
of young and upwardly mobile consumers, XSEL is well-positioned in
China with its unique content and
access. Through its key international partnerships, XSEL is able to
offer its target audience the content they demand - premium sports
and quality entertainment. Through its Chinese partnerships, XSEL
is able to deliver this content across a broad range of platforms,
including television, the Internet, mobile phones, cinema,
university campuses and other multimedia assets in China. Along with its in-house advertising
resources, XSEL offers a total solution empowering clients at every
stage of the media process linking advertisers with China's young and upwardly mobile
demographic.
Headquartered in Beijing, the
Company has offices and affiliates in major cities throughout
China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong
Kong. Xinhua Sports &
Entertainment Limited shares are listed on the NASDAQ Global Market
(NASDAQ: XSEL). For more information, please visit
http://www.xsel.com .
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," ''confident'' and similar statements.
Among other things, any quotations from management in this
announcement contain forward-looking statements. Statements that
are not historical facts, including statements about XSEL's beliefs
and expectations are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from those contained in
any forward-looking statements. Potential risks and uncertainties
include, but are not limited to, risks outlined in XSEL's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F. All information provided in this press
release is as of the date hereof, and XSEL undertakes no duty to
update such information, except as required under applicable
law.
SOURCE Xinhua Sports &
Entertainment Limited