ADAM.L Regulatory News (ADAM)

Adamas Finance Asia Limited

("AFA" or the "Company")

Dividend Distribution by Greater China Credit Fund

Adamas Finance Asia Limited (AIM ticker: ADAM) is pleased to announce it has received its first dividend distribution in the amount of US$75,300 from its investment in August 2013 of US$1 million into the Greater China Credit Fund (the "Fund" or the "GCCF").

GCCF is an investment vehicle established by Hong Kong-based Adamas Asset Management (HK) Limited ("Adamas"), which in February 2014 became the investment manager to AFA following a reverse takeover.

Adamas established the Fund last year to target high-return investments by providing growth capital for small and medium sized enterprises (SMEs) predominantly in Greater China, whose requirements are currently under-served by the traditional banking sector.

The dividend is the first distribution made by GCCF. It reflects the strategic approach followed by the Adamas investment team, which places strong emphasis on a rigorous due diligence process, a requirement for robust collateral, and hands-on involvement, while targeting superior returns.  

AFA Chairman John Croft said: "We are delighted by this initial distribution which we believe provides a good example of how we are now positioned to generate strong returns for our shareholders following our restructuring, backed by the Adamas investment team."

Last year's launch by Adamas of GCCF followed successes achieved with an earlier Adamas fund established in March 2010, the Asia Private Credit Fund ("APCF"). Approximately 90% of invested deals have been exited, yielding a projected gross IRR of 28%.

The APCF was last year named winner of the prestigious Acquisition International Magazine (in collaboration with Preqin) "2013 Best Asia Mezzanine Fund of the Year Award".

Adamas was also earlier this month named as "highly commended" runner-up for the Private Debt Investor "Asia Lender of the Year Award 2013". According to Private Debt Investor, Adamas was "just pipped" into second place by the global giant KKR Asset Management "in one of the most closely fought categories".

Background on the GCCF

The GCCF targets investment in high growth SMEs predominantly in Greater China. The Fund focuses on providing secured financing to operationally strong growth companies, using a mix of debt, convertible instruments and structured or preferred equity to minimise investment risk. The Fund targets SMEs with an enterprise value of under US$400 million and EBITDA of less than US$40 million.

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