Pursuant to the maturity of $12.5 million in existing redeemable convertible bonds on June 4, Yongnam Holdings has announced that it has entered into a facilitation agreement as well as a bond subscription agreement with the existing bondholders.

Under the facilitation agreement, Yongnam will repay the bondholders $1.5 million, to be satisfied through the issuance of 19.7 million new ordinary shares in the company at an issue price of 7.6 cents per share. In addition, Yongnam will repay a further $3 million to the bondholders over ten equal monthly tranches from June 4, with an interest rate of 7% per annum paid in two tranches.

Under the bond subscription agreement, $9.5 million in new redeemable convertible bonds will be issued to the existing bondholders, to be set off against the existing bonds. The new unsecured one-year bonds will carry an interest rate of 7% per annum.


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