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CNEL Company moving from AIM to HKE
Hong Kong Listing Update
Wed 08 Jan 2020 07:00
RNS Number : 1125Z
China New Energy Ltd
08 January 2020
8 January 2020
China New Energy Limited
(the "Company" or "CNE")
Hong Kong Listing Update
The Board of CNE (AIM: CNEL), the AIM quoted engineering and technology solutions provider to the bioenergy sector, provides an update on its application for listing on the Main Board of the Hong Kong Stock Exchange ("HKEx") further to its announcements of 23 October 2019 and 25 June 2019.
The Company continues to make good progress with its application to HKEx, however, the application process has taken longer than expected. On 23 October 2019, resolutions were approved by shareholders in relation to its proposed listing on the Main Board of HKEx ("HKEx Listing") which included shareholders approving the cancellation of trading of the Company's shares on AIM ("Cancellation") simultaneous with admission to HKEx. The resolution in respect of Cancellation expires on 22 January 2020 and, accordingly, the Company will need to re-seek shareholder approval in respect of this resolution. The Company will therefore convene a further extraordinary general meeting for this purpose in due course. Admission to HKEx is now expected to be in the first half of 2020.
The Company and Double River Limited have extended the convertible loan agreement as announced on 4 February 2019. This agreement was due to mature on 14 February 2020 and has now been extended until 14 May 2020 or such later date as both parties may agree. All other terms remain unchanged.
The Company is pleased to announce that trading for the second half of the financial year to 31 December 2019 remained strong and the Board of CNE is optimistic for the prospects for the financial year to 31 December 2020.
Mr Yu, Chairman, commented "We are very pleased with the financial performance of the Company in 2019 and the current order book gives us confidence to maintain or better our current financial performance in the year ahead. It remains our primary objective to have the Company's shares admitted to the Main Board of the HKEx in the first half of 2020. We remain confident that the HKEx Listing will both improve shareholder value and provide us access to cost-effective capital to develop our business to its full potential. Whilst our application remains subject to approval by the HKEx, our experienced team of advisers is working diligently to complete the listing application process and I remain confident we will achieve this goal in H1 2020."
QUESTIONS AND ANSWERS
Why will my China New Energy Ltd Shares be held with HSBC?
Hargreaves Lansdown uses the UK Central Securities Depository, CREST, for all equity and bond settlement and if a stock is withdrawn or cannot be held through CREST it restricts the trading options available to Hargreaves Lansdown clients.
In order to provide an on-going dealing facility in China New Energy Ltd Shares we have entered a global custody agreement with HSBC Bank plc. This agreement means that the stock can be held in its relevant overseas settlement system which ensures that trades in the stock can be settled. The Shares will continue to show in your Hargreaves Lansdown portfolio, but as the underlying custodian will be HSBC, or a sub-custodian of HSBC, there will be certain implications you should be aware of.
Whilst the stock is held with HSBC we will only allow sale instructions to be processed and all purchase requests will be rejected. It will only be possible to sell the Shares by phoning our Stockbrokers on 0117 980 9800, subject to telephone dealing rates of 1% of the consideration, subject to a minimum of £20 and a maximum of £50. Trades will be placed in Hong Kong Dollars and converted by Hargreaves Lansdown subject to our standard currency conversion fees.
Our Hong Kong broker will also charge a commission fee of HKD1,000.00 (currently approximately £100), which will be passed on to you.
Trades may also be bulked with other client orders, which may in some instances work to a client’s disadvantage.
You can find more information on our overseas Share dealing service at https://www.hl.co.uk/shares/share-dealing/overseas-share-dealing-service.
Are there any additional charges for holding the stock through HSBC?
There are no additional charges for transferring to or holding the stock through HSBC but there will be a transaction charge of £15.00 applied by HSBC to settle any transactions, which will be reflected on any contract notes.
When will I be able to trade my Shares on the Hong Kong Stock Exchange?
You will be able to trade your Shares on the Hong Kong Stock Exchange once they have been successfully transferred into our HSBC Account. This process will begin shortly after the Cancellation date that is yet to be scheduled and may take a number of weeks to complete, although we will work to ensure the transfer is concluded as quickly as possible.
Are there any additional risks created by Hargreaves Lansdown holding the Shares with HSBC?
The Shares will be held with our third party custodian, HSBC, who may in turn hold the Shares through a sub-custodian in the home country of the investment. The settlement, legal or regulatory requirements that apply to the Shares may differ from those applicable in the UK. Your investment may not benefit from the same protections in the event of the insolvency of the third party that may apply under UK law. A more detailed explanation of these additional ri
Got mine with Hl so hopefully ok
Couple of big buys just now
I have had shares with cnel for a few years now ,without selling ,if all this goes through could I loose the lot if I don`t sell ?