In a massive corporate refinancing move reshaping the capital structure of regional leisure assets, International Entertainment Corporation has officially completed the second major tranche of its convertible notes subscription agreement alongside DigiPlus Interactive Corp.
The public company formally issued HK$800 million ($102 million) in convertible notes on June 2, 2026, according to a transparent regulatory disclosure filed straight with the Hong Kong Stock Exchange.
Structuring Net Proceeds and Addressing Dilution Metrics
The closing represents the second half of a comprehensive, pre-arranged HK$1.6 billion ($204.1 million) convertible notes financing package initially signed by both gaming firms in November 2025. The first HK$800 million tranche was completed earlier this year in March 2026. International Entertainment confirmed that all regulatory and corporate conditions precedent required for the second closing had been fully satisfied.
Sovereign auditing logs confirm that the capital proceeds generated from the first tranche were deployed entirely to repay outstanding promissory notes and clear corporate secured bank debt. After deducting aggregate transaction expenses totaling approximately HK$2 million ($255,000), cumulative net proceeds from the two unified tranches were calculated at roughly HK$1.59 billion ($202.8 million).
The underlying convertible notes carry an initial strike conversion price fixed at HK$1.00 per share. International Entertainment noted that DigiPlus has not chosen to convert any of the corporate notes issued under the initial March tranche since receiving them.
However, under a maximum conversion scenario where DigiPlus exercises the full HK$1.6 billion in notes at the baseline strike price, the company would be issued 1.6 billion fresh common shares. This execution would establish DigiPlus as International Entertainment’s absolute majority shareholder, commanding a 53.89% controlling stake in the newly enlarged corporate share capital.
Major Equity Shifts for Existing Shareholders
Under this full conversion framework, International Entertainment’s total outstanding issued shares would scale dramatically, jumping from approximately 1.37 billion to 2.97 billion shares. This massive expansion would significantly dilute the equity positions held by all existing public and private shareholders.
Specifically, the holding of Excite Opportunity Fund L.P., in which company Chairman and CEO Ho Wong Meng retains a direct financial interest, would contract sharply from 18.99% down to 8.76%. Concurrently, Eriska Investment Fund Ltd.’s equity stake would decline from 9.63% down to 4.44%, while the collective ownership pool of all other public retail shareholders would be compressed from 71.38% down to 32.91%.
