LONDON (Alliance News) - Adamas Finance Asia Ltd on Friday said it has been informed that Global Pharm Holdings Group Inc is not in a position to resume making monthly payments to the London-listed company in relation to the redemption of a convertible bond held in the Chinese pharmaceutical company.
Adamas Global Alternative Investment Management Inc, the investment manager of Adamas Finance Asia, is in talks with Global Pharm about revising the payment plan, according to a statement by Adamas Finance Asia. Overdue payments are subject to penalties.
Global Pharm had intended to resume payments in March, according to a statement issued by Adamas Finance Asia in January, when a USD375,000 payment was received.
In November 2015, Adamas said that Global Pharm's working capital was committed in stocks of ginseng. As a result, payments for September, October and November were not made on time.
Adamas in October had entered into a revised agreement for the redemption of the remainder of its convertible bond held in Global Pharm.
Shares in Adamas Finance Asia were untraded on Friday morning, having last traded at USD0.58 on Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.