BEIJING, March 5 /CNW/ - Melco China Resorts (Holding) Limited (TSXV: MCG) ("MCR" or the "Company"), is pleased to announce that, in connection with the previously announced C$15,000,000 Private Placement (the "Private Placement") with Wisecord Holdings Limited ("WHL"), it has now received an irrevocable written consent to the Private Placement from shareholders representing more than 50% of the issued Common Shares of MCR.
To facilitate the time required by the TSX Venture Exchange for their regulatory review process, the Company and WHL have also agreed to extend the closing date for the Private Placement (the "Extension Letter") from March 4 to on or before April 20, 2010. WHL has already provided the Company with a deposit of RMB 96 million (approximately C$14.9 million) pursuant to the Private Placement, together with a bridge loan of RMB 74 million (C$11.5 million), which facilitated the Company's new Harbin Bank loan of RMB150 million (C$23.3 million).
"In advance of the final closing date we are actively supporting MCR both strategically and financially," stated Mr. Zhenhua Mao, Chairman of Wisecord Holdings and Chairman of China Chengxin Credit Management Co., Limited (China's largest credit rating agency). We have already lent support to the reinstatement and extension of the Company's bank loans, assisted in the formation of a strategic relationship agreement with the China Enterpreneurs Forum, and endorsed the Company's management agreements with Club Med."
"WHL's commitment to Melco China Resort's is clearly apparent and fully appreciated by the Company", stated Mr. Graham Kwan, Chief Executive Officer of Melco China Resorts. "We expect our co-ordinated efforts will continue to build and realize significant value as we return to normalized operations."
The subscription by WHL is expected to close on the business day following the satisfaction of all of the closing conditions set forth in the subscription agreement and binding letter agreement entered into by the Company and WHL on February 2, 2010. The Extension Letter will be available electronically on www.sedar.com.
About Wisecord Holdings Limited
WHL is an investment company incorporated in Hong Kong and its shareholder is a well-known credit rating agency in China.
About Melco China Resorts
Melco China Resorts is the premier developer of four season destination ski resorts in China. Melco China Resorts is transforming existing China ski properties into world-class, four seasons luxury mountain resorts with excellent real estate investment opportunities for discerning buyers. In February 2009 the Company's Yabuli Resort was awarded Best Resort Makeover in Asia by TIME Magazine. Melco China Resorts' leadership team boasts a proven record of resort development success both internationally and in China. www.melcochinaresorts.com
Neither the TSX Venture Exchange has nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, and actual results may vary from the forward-looking information. Implicit in this information are assumptions regarding future operations, plans, expectations, anticipations, estimates and intentions, such as the plans to develop the ski resorts in China and the ability of the Company to satisfy the conditions to closing of the Private Placement. These assumptions, although considered reasonable by Melco China Resorts at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of Melco China Resorts are subject to a number of risks and uncertainties, including general economic, market and business conditions, uncertainty relating to land use rights, adverse industry events for the ski and real estate industries, Melco China Resorts ability to make and integrate acquisitions, the requirements of recent Chinese regulations relating to cross-border mergers and acquisitions, the inability to obtain required approvals or approvals may be subject to conditions that are unacceptable to the parties, changing industry and government regulation, as well as Melco China Resorts ability to implement its business strategies, dispose of assets or raise sufficient capital, seasonality, weather conditions, competition, currency fluctuations and other risks, and could differ materially from what is currently expected as set out above.
Forward-looking information contained in this press release is based on current estimates, expectations and projections, which Melco China Resorts believes are reasonable as of the date of this press release. Melco China Resorts uses forward-looking statements because it believes such statements provide useful information with respect to the operation and financial performance of Melco China Resorts, and cautions readers that the information may not be appropriate for other purposes. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Melco China Resorts may elect to, it does not undertake to update this information at any particular time.
SOURCE MELCO CHINA RESORTS (HOLDING) LIMITED
For further information: For further information: Melco China Resorts, Investor Relations, Kevin O'Connor or Ali Mahdavi, Tel: (416) 962-3300, Fax: (416) 962-3301, Email: email@example.com