$ITE Electric(581)

' ITE Electric Co has entered into a conditional share placement agreement to issue 63.4 million new shares at 4.68 cents each to raise  $2.97 million.

The new shares, which were sold to three companies and 17 individual invesstors, represent 31.6% of the enlarged share capital of the company. The individual placees include former colleagues of ITE Electric' s chief executive officer and executive director, Zhang Zhi Liang, current employees of the company' s wholly owned Shenzhen Sunrise Development and current directors of Shenzhen Sunrise.

In a filing on Tuesday night, ITE Electric says 100% of the net proceeds of the proposed placement will be used for general working capital purposes.

The placement is also in line with the proposed change of name of the company to Sunrise Shares Holdings and the proceeds from the placement will enable the company to develop the Sunrise brand and diversify into new business segments.

The placement price represents a discount of 10% to the volume weighted average price of 5.2 cents for trades done on Jan 5, being the last full market day on which the shares of the company were traded prior to the day on which the placement agreement was signed.

In Sept, investment holding company Prosperity Luck Overseas Inc acquired a substantial stake in ITE Electric after former non-executive chairman disposed his entire 29% stake in the company for  $6  million.

Prosperity Luck Overseas is wholly owned by Wong Siu Fai who now holds some 39.83 million shares in ITE Electric.

Wong is the chairman of Hong Kong Sunrise Holdings and its group of companies, which is ultimately controlled by his family. The Sunrise Group has interest in real estate development, hospitality and investment activities, with a total asset value of over  $1  billion.'