Huazhang Technology Issued Bonds in the Aggregate Principal Amount of HK$100 Million

Huazhang Technology Holding Limited
2017-03-30 12:22 2155

HONG KONG, March 30, 2017 /PRNewswire/ -- Huazhang Technology Holding Limited ("Huazhang" or the "Group", stock code: 1673) is pleased to announce that, the Group has conditionally agreed to issue Bonds in the aggregate principal amount of HK$100 million with 5.0% interest per annum, to Kaiser Asset Management Limited, an investment holdings company. Based on the initial Conversion Price of HK$2.50 and assuming full conversion of the Bonds at the initial Conversion Price, the Bonds will be convertible into 40 million New Shares, representing approximately 6.24% of the ordinary share capital of the Company, as enlarged by full conversion of the Bonds. The initial Conversion Price represents a discount of approximately 1.19% over the closing price of HK$2.53 per Share as quoted on the Hong Kong Stock Exchange yesterday.

The net proceeds from the issue of the Bond pursuant to the Subscription Agreement, after deduction of all relevant costs and expenses, is estimated to be approximately HK$99.5 million. The Company intends to use the net proceeds approximately 80.0% to be used to fund new intergraded solution projects that we undertake; and approximately 20.0% for general working capital.

Mr. Zhu Gen Rong, Chairman of Huazhang, said, "It is believed that the issue of the Bonds, if materialises, will represent a good opportunity for the Company to raise funds to strengthen its financial position as well as to provide further funding to the Group for its development, especially that the Group entered a material sales framework contract amounting to RMB299.0 million in March 2017. Moreover, the issue of the Bonds will provide the Company with immediate funding without resulting in immediate dilution effect on the shareholding of the existing Shareholders."

About Huazhang Technology Holding Limited

The Group is principally engaged in research and development, manufacture and sale of industry automation systems, sludge treatment products and corresponding services. The Group's industrial automation systems and sludge treatment products are custom-built in accordance with the specifications and requirements provided by the Group's customers. The Group is also engaged in the provision of after-sales and other services Group's existing customers.

Source: Huazhang Technology Holding Limited
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