Eu Yan Sang: Signs non-binding term sheet with HL Bank for proposed issue by co for principal $25m of notes due 2016 and 22m warrants each with the right to subscribe for 1 share each at a yet undetermined exercise price but at minimum of $0.86 (16.9% premium to last done). The notes will bear interest of 3% p.a for the 1st 3 yrs and thereafter at 4.5% with a redeemable option to noteholders after the 3rd yr.
Co intends to use net proceeds of $10m to fund business expansions in China and within the region, another $10m for commercial real estate related to co’s operations and the remainder funds for working capital. Co trades at 12.0x fwd P/E with unanimous Buy calls from 3 houses.
No comments:
Post a Comment