ADAM.L Regulatory News (ADAM)

Adamas Finance Asia Limited

Further Investment into BRJ China Credit Fund Limited

Adamas Finance Asia Limited ("ADAM" or the "Company") has agreed to invest a further US$300,000 into the BRJ China Credit Fund Limited ("BRJ" or "the Fund") following an initial investment of US$500,000 in April 2014.

The Fund provides capital for operationally-sound Chinese SMEs in need of short-term bridging finance not easily available within the People's Republic of China (PRC), where more than 90% of such companies have difficulty in obtaining bank funding.

BRJ was launched by Adamas Asset Management (HK) Limited ("Adamas"), the Hong Kong-based investment management firm that since February 2014 has been acting as ADAM's investment manager. BRJ is set up to offer structured loans of below RMB 50 million (US$8 million), seeking target returns of 24%-30% per annum.

BRJ aims to distribute an annual dividend of 8%, payable semi-annually to investors such as ADAM.

Since ADAM's initial investment into BRJ April 2013, the Fund has achieved three exits from early investments, yielding gross IRRs of 27.26%, 31.83% and 57.04% on fully-repaid loans of US$2.1 million, US$2.4 million and US$4.8 million, respectively.

ADAM Chairman John Croft said: "The decision to make this further investment into BRJ reflects the fact that the Adamas team has been delivering attractive returns both before and after becoming ADAM's investment manager. Adamas has a strong track record of securing high returns from investments backed by solid collateral, and this move further reinforces our commitment to building a refreshed portfolio of income-generating assets attractive to investors seeking high-yield investment opportunities focused on Greater China."

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