[Caihua Social News] New focus (00360-HK) announced that on September 26, 2019, the company entered into a bill exchange agreement with High Inspiring Limited, an indirect wholly-owned special purpose company of Jianyin International (holding), as an initial investor, and Jianyin International Optoelectronics (Holdings), an indirect wholly-owned special purpose company of Jianyin International, as a new investor, according to which the company, as a party, entered into a bill exchange agreement with High Inspiring and Jianyin International Optoelectronics as the other. It has been agreed to exchange convertible notes to be exercised for bills with a total principal of US $24.2 million to be issued by the company to CCB International Optoelectronics.

The note will consist of three tranches with principal amounts of US $4.84 million, US $7.26 million and US $12.1 million, which will expire on March 1, 2020, June 1, 2020 and September 1, 2020, respectively. The bill will bear interest at an annual interest rate of 10%.

As at the date of this announcement, CDH, the controlling shareholder, holds approximately 2.88958 billion shares, accounting for approximately 42.697% of the total issued share capital of the company. Under the Clearing Exchange Agreement, CDH is required to enter into a share charge with the new investor under which all 2.88958 billion shares held by CDH will be charged to the new investor by way of a first fixed charge as a continuing guarantee for the due and punctual payment and performance by the company and CDH of all present and future obligations under or in respect of any one or more of the transaction documents.