Zhitong Financial APP, Green King China Real Estate (00095) announced that on May 18, 2022, the subscriber of the convertible bond, the company and its shareholder Huang Kangjing entered into an extension deed of 2022 to further extend the maturity of the remaining unconverted convertible bonds to May 18, 2023, and amend certain terms of the subscription agreement for convertible bonds, terms of convertible bonds and other relevant transaction documents.
The proposed amendments to the convertible bond subscription agreement, convertible bond and other related documents are subject to the following conditions: the company completes the redemption of the outstanding principal amount of the convertible bond to the convertible bond subscriber on or before May 18, 2022 in accordance with the terms and conditions of the convertible bond subscription agreement (together with the corresponding applicable internal rate of return of $3.1162 million) The Company paid the full administrative fee of US $375000 to the subscribers of the Convertible Bonds on or before 18 May 2022 in accordance with the terms and conditions of the Convertible Bond subscription Agreement; the Company paid the accrued interest on the Convertible Bonds to the subscribers of the Convertible Bonds of US $1.9092 million on or before 18 May 2022, and obtained all necessary approvals, including but not limited to those of the Stock Exchange.
Upon completion of the above conditions, the amendments to the subscription Agreement and the terms and conditions of the Convertible Bonds under the 2022 extension Deed will take effect from 18 May 2022.
The total principal of the convertible bonds is US $100,000. as of the date of this announcement, the principal amount of the convertible bonds has been converted into about 28.7941 million issued shares; the unredeemed principal amount of the convertible bonds was redeemed by the company on November 18, 2020. And the outstanding principal amount of the convertible bonds of $20 million was redeemed by the company on May 18, 2022 (i.e. the maturity date prior to the extension of the convertible bonds under the extension deed of 2022).
Assuming that the remaining unredeemed principal amount of the convertible bonds (i.e. US $50 million) is converted at the conversion price of HK $2.505 per conversion share, the convertible bonds will be convertible into approximately 155 million new shares. The conversion shares (if issued) will account for approximately 3.04% of the existing issued share capital of the company and about 2.95% of the issued share capital of the company expanded by issuing all the converted shares.
The conversion shares that may be issued as a result of the exercise of the conversion shares under the unredeemed principal amount of the convertible bonds will be issued in accordance with the general mandate granted by the shareholders to the directors at the annual general meeting held on 25 June 2021.
According to the announcement, the extension of the maturity date of the convertible bonds for 12 months and other related amendments reflect the group's long-term strategic business relationship with the subscribers of the convertible bonds and its parent company, Jianyin International (Holdings) Co., Ltd., which will not only benefit the two groups, but will also increase the working capital liquidity of the company and its subsidiaries.