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HONG KONG, Aug 5, 2010 - (ACN Newswire) - Hong Kong Resources Holdings Company Limited ("HKRH" or the "Group"; SEHK: 2882) today announced that it has entered into an agreement with seven subscribers to issue HK$216,000,000 aggregate principal amount of convertible bonds due 2013.
The bonds are convertible into shares at an initial conversion price of HK$1.58 per share, representing a premium of approximately 24.41% above the closing price of HK$1.27 per share traded on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 2 August 2010. Upon full conversion of the bonds (assuming no adjustment to the conversion price), a total of 136,708,860 new shares is to be issued, representing approximately 6.65% of the issued share capital as enlarged by the issue of the new shares.
The seven subscribers include Chinachem Group, Beijing Beida Jade Bird Universal Sci-Tech Company Limited (SEHK: 8095), Shau Kee Financial Enterprises Limited and Mr Martin Lee. The remaining subscribers are executive directors of HKRH, which include chairman Dr Kennedy Wong and executive directors Dr Liu Wang Zhi and Dr Herbert Hui.
The proceeds are intended to be used for the expansion of the Group's business in Hong Kong, Macau and the PRC, the repayment of short-term borrowing and the general working capital of the Group.
Dr Kennedy Wong, Chairman of HKRH, said, "We are pleased to receive strong support from the investment community. The issue of convertible bonds will not only strengthen our capital base but also deliver the immediate effect of boosting our cash position, enabling the Group to convert its short term loans to long term financing which gives greater flexibility for future business expansion. Keeping a close eye on the opportunities arising from the gold and jewellery market in the Greater China Region, we plan to use these funds to accelerate the expansion of our core retail businesses and to increase our market share, thereby bringing maximum returns to our shareholders."
Contact:
Hong Kong Resources Holdings Company Limited
Herbert Hui,
Head of Investor Relations & Corporate Communications Department and
Executive Director
Thisby Wong, Manager, Corporate Communications Department
Phone: +852 3926 3613
Email: hh@hkrh.hk / thisby@hkrh.hk
Strategic Financial Relations Limited
Heidi So / Derek Lee / Angelus Lau / Angela Ng
Phone: +852 2864 4826 / 4858 / 4805 / 4855
Email: heidi.so@sprg.com.hk / derek.lee@sprg.com.hk / angelus.lau@sprg.com.hk / angela.ng@sprg.com.hk
Topic: Issue of Stocks/Bonds
Source: Hong Kong Resources Holdings Company
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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