HONG KONG, Feb. 20, 2013 /PRNewswire/ -- Greenheart Group Limited ("Greenheart" or "the Company") announced today that the Company has redeemed US$8,000,000 of its US$25,000,000 convertible note ("CN") due on the 17th August 2015. Subsequent to the terms and conditions of the CN, the implementation of Sino-Forest Corporation's restructuring plan triggered a "Change in Control" provision entitling Greater Sino Holdings Limited ("the CN Holder") to require the Company to redeem the CN in whole or in part. Upon discussions with the CN fund manager, GEMS Investment Management Limited ("GEMS"), the Company will partially redeem US$8 million and reduce the CN to US$17,000,000. Under the terms and conditions of the CN, the CN Holder may subsequently exercise its redemption right (in whole or in part) on 30 days notice at anytime prior to the maturity of the CN. Mr. Simon Murray, founder and Chairman of GEMS, will remain on the board of directors of Greenheart.
Mr. David Van Oppen, Senior Partner at GEMS said, "GEMS continues to be a strong supporter of Greenheart's business, strategy and management team. This partial redemption allows us to realize approximately one-third of our original investment while leaving two-thirds or US$ 17 million invested with Greenheart and maintaining our position as a key stakeholder in the Company. We look forward to continuing to work closely with Greenheart as they execute their plans."
Mr. Judson Martin, Chairman, Chief Executive Officer and Executive Director at Greenheart said, "We are pleased to have agreed this partial redemption with a significant investor. GEMS has been a strong supporter of Greenheart and has visited our operations in Suriname to understand our strategy and growth plan. We will continue to work closely with GEMS and all other stakeholders in growing our business and returning value to our shareholders and convertible note holder. "
About the CN Holder - Greater Sino Holdings Limited
Greater Sino Holdings Limited is the Convertible Note Holder and a subsidiary of the Asia Resources Fund, which targets investments across a diversified portfolio of natural resources companies or assets (including forestry) with exposure to broad Asian growth. The fund manager of Asia Resources Fund is GEMS Investment Management Limited, a private equity fund management group that manages over US$600 million of assets across Asia.
About Greenheart Group Limited
Greenheart Group Limited is a Hong Kong-based investment holding company. The principal activities of the Company's subsidiaries consist of responsible and sustainable log harvesting, lumber processing and sales and marketing of logs and lumber products to China and other countries around the world. The Company owns certain rights to manage over 400,000 hectares of hardwood forest concessions in Suriname, South America and owns approximately 13,000 hectares of freehold land with a net harvestable plantation area of approximately 11,000 hectares in New Zealand. Learn more at www.greenheartgroup.com.
Please note: This press release contains projections and forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of the Company and are subject to risks and uncertainties that could cause actual results and company plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but not limited to, changes in China and international economies; changes in currency exchange rates; changes in worldwide demand for the Company's products; changes in worldwide production and production capacity in the forest products industry; competitive pricing pressures for the Company's products and changes in wood and timber costs.
FOR FURTHER INFORMATION, PLEASE CONTACT:
David Wu
Vice President of Corporate Development & Investor Relations
Tel: +852 2593 3122
Email: davidwu@greenheartgroup.com
