Opinion Real Estate Network News:August secondChina Logistics assets Holdings LimitedThe company announced that the company and the buyer have decided that the $100 million convertible bonds previously issued will not be issued in theHKExbe listed.

As a result, China Logistics Asset Holdings, the guarantor of its subsidiaries and the Purchaser entered into a supplementary subscription agreement on 31 July 2020 relating to the deletion of the relevant prerequisites for the bond issue, except as amended above, all other important terms of the subscription Agreement remain unchanged.

The China Logistics assets Board considers that the terms of the Supplementary Agreement are fair and reasonable and in the interests of the Company and shareholders as a whole.

According to the opinion Real Estate New Media, the principal of the convertible bond is $100m, the annual interest rate is 6.95%, the maturity is five years, the face value of each convertible bond is $200000, and the net income is about $97 million. Of this amount, $90 million will be used to repay $84 million in priority notes due on November 30, 2020, while the remaining $7 million will be used for general corporate purposes, such as the development of new projects.

Based on the initial conversion price of HK $3.19 per share and assuming that the bonds are fully converted, the above bonds will be equivalent to about 7.51 per cent of the issued share capital of China's logistics assets and about 6.99 per cent of the issued share capital after the issuance of the conversion shares (assuming there is no other change in the issued share capital of the company), it can be converted into common shares with a face value of US $0.0000625 per share and a maximum of 242962382 conversion shares with a total par value of US $15185.15. Based on the estimated net proceeds from the bonds of approximately US $97 million and 242962382 conversion shares, the net price of each conversion share is about HK $3.09.