China Medical drops conversion rate on 3.5% senior subordinated notes

By Julie A. Miller

Washington, July 25 - China Medical Technologies, Inc. announced that the conversion rate for its $150 million 3.5% convertible senior subordinated notes due November 2011 will be decreased to 31.7378 American Depositary Shares from 31.3953 ADSs per $1,000 principal amount of notes.

The resulting conversion price is reduced from $31.85 to $31.51.

The adjustment is required because the company declared a cash dividend of $0.05 per share, equivalent to $0.50 per ADS. Assuming full conversion of the notes, an additional 513,750 shares, equivalent to 51,375 ADSs, will be issued due to the lowering of the conversion rate.

The adjustment will be effective immediately.

China Medical is a Beijing-based maker of cancer treatment devices.

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