Both agreements are expected to be completed later this month subject to regulatory procedures. The proceeds of the two transactions will be used to develop four CGI animated features including Astro Boy and Gatchaman, which are scheduled to open in 2009 and 2010, respectively.
Earlier this year, Imagi announced a global distribution partnership with Summit Entertainment, whereby Summit will distribute Astro Boy worldwide except for Imagi's reserved territories of Japan, Hong Kong and China.
The first subscription agreement, announced to the Stock Exchange on Sept 3, is with a wholly-owned subsidiary of Shui On Holdings Limited under which the subscriber will invest $10m for approximately 90.6m new shares.
Imagi controlling shareholder Sunni International Limited was initially to provide the Shui On subsidiary with an additional 40m gift shares and has since advised that it will transfer a further 30m gift shares to the new investor, bringing the total shares owned by the new investor to 209.95 m, representing a 10.99% ownership stake in Imagi.
The second agreement, announced to the Stock Exchange on September 12, will see Mehta-Imagi invest $20m for approximately 181.2m gift shares. Sunni has agreed to transfer an additional 140m gift shares to Mehta-Imagi, bringing the total shares owned by Mehta-Imagi to 321.2m, representing a 16.82% ownership stake in Imagi.