By Jennifer Chiou
New York, Aug. 19 - China Properties Investment Holdings Ltd. said it wrapped a placement covering HK$600 million of 0% two-year convertible bonds on a best-efforts basis.
The company entered into an agreement on Saturday for the placement that was contingent on being placed to no fewer than six investors.
Based on a conversion price of HK$0.118, a maximum of 5,084,745,762 shares will be allotted upon conversion. That figure makes up 167.79% of the company's existing share capital.
The conversion price represents a 38.54% discount to the HK$0.192 closing price of the company's stock on Aug. 14.
Proceeds will be used to finance the possible acquisition of World Petroleum Inc. and for general working capital.
China Properties said it will seek shareholder approval at a general meeting to allow the issue under a specific mandate.
The company also said that its shares were to resume trading on Wednesday after having been suspended on Monday for the filing of the placement announcement.
Hong Kong-based China Properties is an investment holding company with interests in commercial properties located in Shanghai.
| Issuer: | China Properties Investment Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$600 million
|
| Maturity: | Two years
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion price: | HK$0.118, down 38.54% from closing price on last trading day
|
| Announcement date: | Aug. 19
|
| Stock price: | HK$0.192 on Aug. 14
|
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