4 Aug 2017 15:36
Adamas Finance Asia Limited
("ADAM" or the "Company")
UPDATE ON GLOBAL PHARM CONVERTIBLE BOND
The Company is announcing an update on the redemption of the remainder of the convertible bond owed by Global Pharm Holdings Group Inc. ("Global Pharm") (the "Convertible Bond").
Global Pharm has, to date, made payments of approximately US$6.01 million (net to ADAM) to offset against the original redemption amount of the Convertible Bond of approximately US$25.05 million (net to ADAM). In the Company's audited accounts for the year ended 31 December 2016, the carrying value of the Convertible Bond was written down to US$17.3 million.
As a result of the continuing failure of Global Pharm to make payments in redemption of the Convertible Bond, the Company instructed a leading law firm in Hong Kong to advise on the actions available to enforce payment. The work by the lawyers included the commissioning of an investigative agency to report on Global Pharm and its chairman.
The report from the lawyers has been received and the advice is that the Company should consider taking steps to enforce the available collateral, namely charges over shares in Global Pharm held by, as well as a personal guarantee from, the chairman. It should be noted that the investigative agency has not yet been able to identify the exact location of the chairman.
The Company will take all appropriate action to recover the monies owed under the Convertible Bond but, in light of the report from the lawyers, the amount of ultimate recovery is in doubt.
This Announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Adamas Finance Asia Limited | |
John Croft | +44 (0) 1825 830587 |
WH Ireland Limited - Nominated Adviser | |
Tim Feather Ed Allsopp | +44 (0) 113 394 6600 +44 (0) 117 945 3444 |
finnCap Limited - Broker | |
William Marle Grant Bergman | +44 (0) 20 7220 0500 |
First City Public Relations (Hong Kong) | +852 2854 2666 |
Allan Piper | +44 (0) 7438 148968 |