Reefcomber PLC Rights Issue fully oversubscribed

Hotel Reefcomber PLC, under its new Directorate and the able direction of industry veteran Prema Cooray – whose presides as the Company’s newly appointed Chairman- announced a Rights Issue backed by warrants exercisable in 2011, 2012 and 2015. The Issue and the mode in which it was offered to shareholders, have been viewed by industry analysts as a strong indication of the strategic intent of the Company.

The Issue was oversubscribed with shareholders subscribing for an additional 7.9 million shares, an oversubscription of 6 times for additional shares.

The Rights Issue complements the aggressive expansion plans for Hotel Reefcomber Plc and follows on the heels of the Company’s strategic purchase of a 7-acre property with a picturesque, almost one kilometer of beach in the tourism hub of Waskaduwa, Kalutara North. The Company intends to commence the construction of a 4 star, 150 roomed resort in early 2011, whilst plans are also underway to undertake a complete renovation of its existing property in Hikkaduwa. In the medium term the Company will follow a strategy of expansion with focus on acquisition of property along the beautiful coastline of Sri Lanka, thereby enhancing its resort portfolio.