Pharmaron cuts conversion prices on two series of convertibles

By Mary-Katherine Stinson

Lexington, Ky., July 26 – Pharmaron Beijing Co. Ltd. announced adjustments to the conversion prices for its $300 million of 0% convertible bonds due 2026 and RMB 1.916 billion 0% dollar-settled convertible bonds due 2026, according to a notice.

The conversion price of the series 1 $300 million tranche of 0% convertible bonds due 2026 will be adjusted downward to HK$110.32 from HK$166.42 per H share effective July 27.

The conversion price of the series 2 RMB 1.916 billion 0% convertible bonds due 2026 will be adjusted downward to HK$100.97 from HK152.32 per H share effective July 27.

The adjustment was the result of the declaration of the profit distribution and the capitalization of reserves by the company.

A cash dividend totaling RMB 357.3 million including tax, representing a dividend of RMB 0.30 per share based on the total issued shares, will be distributed to shareholders. A total of 595,577,402 shares, comprising 495,065,027 new A shares and 100,512,375 new H shares, will be issued on the basis of five capitalization shares for every existing 10 shares.

Assuming full conversion of the series 1 bonds at the adjusted conversion price, the H shares that may be convertible and issuable under the series 1 bonds will further increase to approximately 21,098,984 H shares from approximately 13,986,540 H shares, representing 10.5% of the total issued H share capital and approximately 6.1% of the enlarged total issued H share capital.

Assuming full conversion of the series 2 bonds at the adjusted conversion price, the H shares that may be convertible and issuable under the series 2 bonds will further increase to approximately 23,043,544 H shares from approximately 15,274,414 H shares, representing 11.46% of the total issued H share capital and approximately 6.67% of the enlarged total issued H share capital resulting from the conversions of the series 1 and series 2 bonds.

The total issued shares of the company are 1,191,154,804, made up of 990,130,054 A shares and 201,024,750 H shares.

Citicorp International Ltd. is the trustee.

Pharmaron is a Beijing-based research and development service provider for the life sciences industry.

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