Cedar

Cedar: has effectively revised the transaction structure of the RTO of the Hua Cheng group announced in May ’13, by terminating the original RTO agreement, and entering into a new agreement to acquire only certain assets in the Hua Cheng group that have been assessed to be of better value and development potential. Under the new agreement, Cedar has proposed the acquisition of all shares of Trechance Holdings for consideration of Rmb 22.5m, to be satisfied by i) issue of 128.6m new Cedar shares at issue price of $0.007 each, and ii) a $3.6m, 5% bond due 2015. Trechance, owned by Mr Ji Yu Dong and his daughter Ms Ji Lei, is involved in property development and property invmt in the PRC. Trechance (and its subsidiaries), is itself currently undergoing a restructuring exercise such that Trechance will own certain property development and property management and leasing businesses in Guizhou province (belonging to the Hua Cheng group). The assets, with an estimated gfa of ~270k sm under devt and/or held for future devt, have an NTA of ~Rmb 20.5m as at Jun ’13.