Dafy Holdings proposes up to HK$80 million 8% convertibles

By Wendy Van Sickle

Columbus, Ohio, Aug. 1 – Dafy Holdings Ltd. entered into a placing agreement for up to HK$80 million of six-month convertible bonds.

The company entered into a one-month agreement with South China Securities Ltd. to procure placees for the bonds, according to a company notice.

The interest rate will be 8% per year with an initial conversion price of HK$0.80, subject to adjustment, representing a 42.86% premium to the closing price on Thursday and a 33% premium to the average closing price of the five consecutive trading days prior to the agreement.

A maximum number of 100 million conversion shares will be allotted, representing about 8.12% of the existing shares in issue.

Proceeds will be used to repay an existing loan, for a potential acquisition and for business development and working capital.

The construction engineering company is based in Hong Kong.

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