China Environmental cancels proposed HK$40 million of three-year convertible bonds

By Abigail W. Adams

Portland, Me., June 3 – China Environmental Technology Holdings Ltd. has cancelled its proposed offering of HK$40 million three-year convertible bonds, according to a company news release.

On May 2, the company had announced plans to issue HK$40 million of 12% three-year convertible bonds with an initial conversion price of HK$0.058 per share to China Daisy Finance Ltd.

The following day Sure Fast Enterprises Ltd. applied to the High Court of Hong Kong for an injunction against China Environmental regarding the proposed convertible bond issuance.

China Environmental had allegedly issued $7 million of convertible bonds due 2021 to Sure Fast.

However, China Environmental claimed that those bonds were invalid and should be rescinded.

On May 13, the company announced the injunction order relating to the proposed issue of convertible bonds had been adjourned.

However, certain conditions under the subscription agreement were not fulfilled or waived prior to the May 31, 2019 deadline and the deadline had not been extended, according to the company news release.

Therefore, the proposed convertible bond issuance will not proceed, the company said.

China Environmental is a Hong Kong-based environmental protection related investment holding company focused on wastewater treatment.

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