Ruyan drops notes' conversion price to HK$1.35

By Julie A. Miller

Washington, July 31 - Ruyan Group Ltd. announced that the conversion price for its convertible notes will decrease to HK$1.35 per share from HK$1.59.

The terms call for adjustments one and two years after the issue date of July 31, 2007 if the volume weighted average trading price of the shares over the preceding calendar month is less than 85% of the conversion price then in effect. The price is adjusted to equal to the volume weighted average trading price for that same monthly period.

In addition, the company and the trustee for the notes agreed to amend the terms so that amounts are rounded to the nearest cent rather than the nearest dollar. "Consistent with market practice for Hong Kong dollar denominated convertible notes, it was the parties' intention to have cents rounding rather than dollar rounding. Dollar rounding would result in adjustments and non-adjustments outside the contemplation of the parties - especially when viewed in light of the conversion price being set at HK$1.59 on issue," Ruyan's announcement said.

Beijing-based Ruyan Group is engaged in the development and marketing of such products as consumer bioelectronics and biopharmaceuticals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.