omniture

China Metal Resources Utilization Limited Proposed Issue of HK$600 Million Convertible Bonds to China Huarong International and Prosper Rich

Instill Momentum by Providing Capital for Future Development and Expansion Following the Positive Profit Alert
China Metal Resources Utilization Limited
2017-08-01 17:30 4462

HONG KONG, Aug. 1, 2017 /PRNewswire/ -- China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK), China's largest recycled copper products manufacturer, is pleased to announce that the Company entered into the Subscription Agreement with China Huarong International Holdings Limited ("China Huarong International") and Prosper Rich Investments Limited ("Prosper Rich") in relation to its proposed issue of 2-Year Convertible Bonds of HK$400,000,000 and HK$200,000,000 respectively.

Upon the satisfaction (or waiver) of the conditions under the Subscription Agreement, China Huarong International and Prosper Rich are eligible to convert ordinary shares of HK$0.10 each in the issued share capital of the Company at an initial Conversion Price of HK$2.990 per Share (subject to adjustment) respectively. The net proceeds from the issue of the Convertible Bonds will be approximately HK$582,000,000. The Company intends to use the net proceeds from the issue of the Convertible Bonds to purchase raw material for the Company's expansion of production.

As at 31 July 2017, China Huarong International and Prosper Rich hold 90,881,295 Shares and 814,074 Shares in the Company respectively. Assuming full conversion of the Convertible Bonds at their respective initial Conversion Price, the Convertible Bonds will be convertible into approximately 200,668,896 New Shares, representing approximately 8.13% of the issued share capital of the Company as at 31 July 2017 and approximately 7.52% of the issued share capital of the Company as enlarged by the issue of the New Shares.

China Metal Resources announced positive profit alert earlier. As compared to the net loss for the same period of 2016, the Company expected that its interim results for the six months ended 30 June 2017 will record a net profit. Such expectation was primarily attributable to a significant increase in the Company's revenue to not less than RMB4,000 million for the six months ended 30 June 2017 as compared to RMB1,464 million for same period of 2016 as well as an increase in government grants and subsidies and the improvement in the trade receivables from sales of the Company's copper products.

Mr. Yu Jianqiu, Chairman of the Company, said, "The announcement about positive profit alert of China Metal Resources shows that the Company has enhanced the production utilization rate and successfully turned the loss into profit. As for the issuance of convertible bonds this time, it demonstrates a strong recognition from investors. Not only will it enhance the Company's capital structure and liquidity and to finance the Company's future development and expansion, but it will also significantly facilitate the Company to further consolidate its leading position in the scrap copper industry.  We will continue to strive to maximize the return for our shareholders."

For further information about the issuance of Convertible Bonds to China Huarong International and Prosper Rich, please refer to the corresponding announcement at the following link: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0731/LTN20170731992.pdf

About China Metal Resources Utilization Limited

China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK) is a leading manufacturer in scrap copper industry. The Company has a fully integrated value chain with a production and service business model, with business consisting of scrap metal recycling, standard processing and metal deep processing products. By making use of the internet, the Company also provides a comprehensive platform combined with recycle metal information, warehouse logistics and financial services, providing services including recycled metal production, sale and related services. China Metal Resources is mainly involved in the sale of deep processed metal products and scrap metal value chain integrated services, in which deep processing metal includes the processing of recycled scrap copper, scrap aluminium, turning them into different copper and aluminium products such as copper rod, copper bar, copper wire as well as cable, wire and network cable; while scrap metal value chain integrated services include standard metal recovery processing, warehouse logistics, transaction settlement and financial services.

 

Source: China Metal Resources Utilization Limited
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