Regent Pacific Group Limited

Regent Pacific Group Limited

November 04, 2005 11:21 ET

Regent Pacific Group Limited: Subscription In Red Dragon Resources Corporation

HONG KONG, CHINA--(CCNMatthews - Nov. 4, 2005) - Regent Pacific Group Limited (the "Company") has on 18 October 2005 through its wholly owned subsidiary Interman Holdings Limited entered into a subscription agreement for the purchase of 2,000,000 units of securities comprising of 1 common share ("Common Share") and 1/2 of a common share purchase warrant ("Warrant") (the Common Shares and Warrants are collectively the "Units") in the capital of Red Dragon Resources Corporation (TSX Venture Exchange: DRA) (the "Issuer"), an Ontario company. James Mellon, a shareholder of the Company (the "Shareholder"), has on 19 October 2005 entered into a subscription agreement for the purchase of 800,000 Units in the capital of the Issuer. The closing of the foregoing purchase of Units, which was conducted on a private placement basis, occurred on 31 October 2005.

The subscription price was Cdn.$0.60 for each Unit for a total consideration of Cdn.$1,680,000. Each Warrant enables the holder to purchase 1 common share of the Issuer for a period of 12 months from the completion of the offering at a price of Cdn.$0.75 per common share.

The Common Shares which constitute part of the Units were issued from the treasury of the Issuer. Immediately prior to the acquisition of the Common Shares, the Company owned, directly and indirectly, approximately 7.21% of the issued capital of the Issuer and the Shareholder owned, directly and indirectly, approximately 15.09% of the issued capital of the Issuer. After the acquisition of the Common Shares, and before the exercise of the related Warrants, the Company owned, directly and indirectly, approximately 11.56% of the issued capital of the Issuer and the Shareholder owned, directly and indirectly, approximately 16.46% of the issued share capital of the Issuer (as enlarged by the issue of the Common Shares).

The Company and the Shareholder are existing shareholders of the Issuer and the subscriptions of the Units are entered into for investment purposes. The Company and the Shareholder may, depending on market and other conditions, increase or decrease their beneficial ownership, control or direction over securities of the Issuer, through market transactions, private agreements, treasury issuances, exercise of options, convertible or exchangeable securities or otherwise.

Contact Information

  • Regent Pacific Group Limited
    Clara Cheung
    Director
    +852 2514-6111
    Suite 1401, Henley Building,
    5 Queen's Road Central, Hong Kong