Asia Energy Logistics proposes up to HK$60 million 2.5% convertibles

Chicago, June 25 – Asia Energy Logistics Group Ltd. entered into a placing agreement for up to HK$60 million of three-year convertible bonds.

The company entered into a one-month agreement with VC Brokerage Ltd. to procure no less than six placees for the bonds, according to a company notice.

The interest rate will be 2.5% per year with an initial conversion price of HK$0.06, subject to adjustment, representing a 5.3% premium to the closing price on Tuesday and a 3.5% premium to the average closing price of the five consecutive trading days prior to the agreement.

A maximum number of 1 billion conversion shares will be allotted, representing about 40.3% of the existing shares in issue.

Holders will have conversion rights to convert the bonds into shares after one year until the third business day prior to the maturity date.

Proceeds will be used for general working capital.

Asia Energy Logistics is incorporated in Hong Kong and is mainly engaged in railway logistics and dry bulk shipping.

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