LONDON (Alliance News) - Adamas Finance Asia Ltd Monday said it has received a second USD0.75 million from Global Pharm Holdings Group Inc, but that still leaves some USD21.1 million outstanding from its sale of its interest in Global Pharm Holdings.
The company in December agreed the redemption of the whole of a convertible bond held in Chinese pharmaceutical company Global Pharm Holdings for an aggregate cash consideration of USD25 million. It was supposed to get USD2.4 million at the end of 2014, USD9 million at the end of March and a final payment of USD13.6 million at the end of April, but in early April said it had been informed by its investment manager that there will be a delay in the receipt of the USD9 million March payment.
It then got a USD0.75 million payment last month, followed by the same amount this month.
"The company has now received two payments of USD0.75 million which have been offset against the USD9 million which was due on 31 March 2015. Overdue amounts from the two payments due on 31 March 2015 and 30 April 2015 are subject to penalty interest of 26% per annum, compounded on a daily basis," it said.
"The company's Investment Manager, Adamas Global Alternative Investment Management Inc., is in discussions with Global Pharm to resolve the matter and negotiate a revised redemption schedule," it added.
Adamas Finance Asia shares were down 5.9% at 0.640 pence Monday afternoon.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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