China's Chun Wo lowers conversion price on its bonds to HK$1.63

By Susanna Moon

Chicago, June 5 - Chun Wo Development Holdings Ltd. said it adjusted the conversion price on its convertible bonds to HK$1.63 from HK$1.74, effective June 6.

The company said it lowered the conversion price on the bonds because the daily volume-weighted average sale price per share was less than the conversion price for each of the 30 consecutive trading days ending before the reset date of June 6.

Therefore, the conversion price was adjusted based on the arithmetic average of the daily VWAP during the 30 trading days. The adjusted price, however, cannot be less than HK$1.63, or 75% of the initial conversion price.

Following the adjustment, the maximum number of shares to be issued by the company upon conversion of the remaining bonds based on the adjusted convertible price of HK$1.63 will not be more than the number of shares permitted under the general mandate.

Chun Wo Development, formerly Chun Wo Holdings Limited, is an investment holding company based in Hong Kong.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.