International Entertainment Corporation completed the second tranche of its convertible notes subscription agreement on June 2nd, issuing HK$800 million ($102 million) in notes to DigiPlus Interactive Corp., according to a Hong Kong Stock Exchange filing.
The company said all conditions precedent for the second completion had been fulfilled. The issuance marks the second HK$800 million ($102 million) tranche under a broader HK$1.6 billion ($204.1 million) convertible notes agreement reached on November 17th, 2025. The first tranche was completed on March 3rd, 2026.
International Entertainment said all net proceeds raised from the first subscription had been used to fully repay promissory notes and secured bank borrowing.
After deducting related costs and expenses of about HK$2 million ($255,000), net proceeds from the two tranches were previously estimated at about HK$1.59 billion ($202.8 million).
The convertible notes carry an initial conversion price of HK$1.00 per share. The company said DigiPlus has not exercised its rights to convert the first subscription notes since their issuance on March 3rd.
If all notes are converted at the initial conversion price, DigiPlus would hold 1.6 billion shares, representing about 53.89 percent of International Entertainment’s enlarged issued share capital. The company currently has 1,369,157,235 shares in issue, which would rise to 2,969,157,235 shares upon full conversion.
Under that scenario, the stake held by Excite Opportunity Fund L.P. — in which International Entertainment chairman, chief executive and executive director Ho Wong Meng is deemed interested — would decline from 18.99 percent to 8.76 percent.
Eriska Investment Fund Ltd.’s holding would fall from 9.63 percent to 4.44 percent, while the stake held by other public shareholders would decline from 71.38 percent to 32.91 percent.
