International Entertainment Corporation has completed the second tranche of its convertible notes subscription agreement with DigiPlus Interactive Corp., issuing HK$800 million ($102 million) in notes on June 2, according to a filing with the Hong Kong Stock Exchange.
The transaction represents the second half of a HK$1.6 billion ($204.1 million) convertible notes deal signed in November 2025. The first HK$800 million tranche was completed in March 2026.
The company confirmed that all conditions required for the second completion had been satisfied. Proceeds from the first tranche were used entirely to repay outstanding promissory notes and secured bank debt.
After deducting related expenses of approximately HK$2 million ($255,000), total net proceeds from the two issuances were estimated at around HK$1.59 billion ($202.8 million).
The convertible notes have an initial conversion price of HK$1.00 per share. International Entertainment noted that DigiPlus has not converted any of the notes issued under the first tranche since they were received in March.
Should DigiPlus convert the full HK$1.6 billion in notes at the initial conversion price, it would acquire 1.6 billion shares and become the company’s majority shareholder with a 53.89% stake in the enlarged share capital.
Under the full-conversion scenario, International Entertainment’s total issued shares would increase from approximately 1.37 billion to 2.97 billion.
The ownership stakes of existing shareholders would be significantly diluted. Excite Opportunity Fund L.P., in which chairman and CEO Ho Wong Meng has an interest, would see its holding fall from 18.99% to 8.76%. Eriska Investment Fund Ltd.’s stake would decline from 9.63% to 4.44%, while other public shareholders would collectively see their ownership reduced from 71.38% to 32.91%.
