LONDON (Alliance News) - Adamas Finance Asia Ltd said Monday that monthly payments due from Global Pharm Holdings Group Inc for September, October and November have not been received to date, as Global Pharm's working capital is tied up in ginseng.
Adamas in October entered into a revised agreement for the redemption of the remainder of its convertible bond held in Global Pharm. Monthly payments under the deal are subject to Global Pharma's working capital, and Global Pharm had intended to make overdue payments for September and October in November.
However, the company has received neither the overdue payments nor the payment for November, due to Global Pharm's working capital "being committed in stocks of ginseng". Overdue payments under the revised agreement are subject to penalties, it said.
The company said its investment manager, Adamas Global Alternative Investment Management Inc, is in close dialogue with Global Pharm on the company's behalf, and further announcements will be made as appropriate.
Shares in Adamas Finance Asia were untraded Monday afternoon at 0.630 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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