Bonds sold to fund start-up capital for property development project
By Devika Patel
Knoxville, Tenn., Jan. 28 - China Metro Rural Holdings Ltd. raised $5 million in the first tranche of a $15 million private placement of 10% convertible bonds due 2016 on Jan. 27, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal priced on Dec. 20.
Each bond is convertible into ordinary shares at $1.30 per share, a 34.02% premium to the Dec. 19 closing share price of $0.97. The bonds may be put after 18 months.
Cheng Chung Hing will invest $5 million.
Proceeds will be used as start-up capital for a property development project.
Based in Kowloon, Hong Kong, China Metro Rural is a developer and operator of integrated agricultural logistics and trade centers.
| Issuer: | China Metro Rural Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $15 million
|
| Maturity: | 2016
|
| Coupon: | 10%
|
| Conversion price: | $1.30
|
| Put: | After 18 months
|
| Warrants: | No
|
| Investor: | Cheng Chung Hing (for $5 million)
|
| Pricing date: | Dec. 20
|
| Settlement date: | Jan. 27 (for $5 million)
|
| Stock symbol: | NYSE: CNR
|
| Stock price: | $0.97 at close Jan. 24
|
| Market capitalization: | $72.78 million
|
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