28 Mar 2013 08:08
GEONG INTERNATIONAL LIMITED - Part Repayment of Convertible Unsecured Loan StockGEONG INTERNATIONAL LIMITED - Part Repayment of Convertible Unsecured Loan Stock
PR Newswire
London, March 28
GEONG International Limited (AIM: GNG), a leading Internet software solutionsprovider and operator for large enterprises in China, announces that it hasreached agreement for the part repayment of its outstanding £2.5 millionconvertible unsecured loan stock ("CULS").
Following the announcement on 25 January 2013 regarding its default under theterms of the CULS, the Company now announces that it has reached an agreementwith Hanafin Investments Limited ("Hanafin") that it will repay £1.5 million ofthe outstanding loan stock in instalments before the end of April 2013 in linewith the following schedule:
Date Principle(RMB) Principle(USD) 26/03/2013 2,000,000.00 - 01/04/2013 2,000,000.00 - 10/04/2013 2,800,000.00 - 28/04/2013 2,000,000.00 - 30/04/2013 - US$900,000.00The remaining £1.0 million will be replaced by a new issue of CULS, which willexpire on 30 June 2014, carry an interest coupon of 7.5% and be convertibleinto ordinary shares at a price of 5p per share (a 51% premium to themid-market closing price on 22 March, 2013). The new CULS, like the previousCULS, will not be listed on any exchange, will be convertible at any time priorto expiry and may be redeemed by the Company at any time. If converted in full,the resulting ordinary shares would represent 34.6% of the enlarged issuedshare capital of the Company. Having made the commitment to the repaymentschedule, the Directors are confident that the Company will have sufficientworking capital for its normal trading conditions not to be affected by theearly repayment. The Company's cash balance at 28 February 2013 was £4.6million. The first payment was made on 26 March, 2013.
The Company intends to provide a full year trading update on 20 May 2013 withthe results scheduled to be announced during the second half of July 2013.
For further information, please contact:
GEONG International Limited www.geong.com Tel: +86 10 8586 9655Henry Tse, ChairmanWeidong Wang, CEO
Nomad and Joint BrokerfinnCap Tel +44 (0)20 7220 0500
Stuart Andrews Ben Thompson Financial Adviser Tel: +44 20 3362 8882 Evolution Securities China Limited Tim WorlledgeAbout GEONG International Limited
GEONG is recognised as a leading independent Internet software solutionsprovider and operator for large enterprises in China.
Registered in Jersey, the Company's operations are headquartered in Beijing,China. GEONG International Ltd. (GEONG or the Company) has been quoted on theLondon Stock Exchange (LSE AIM: GNG.L) since June 2006. The Company has sincetransformed from an ECM (Enterprise Content Management) software and servicecentric business to an internet business centric company.
GEONG is an Internet solutions and service software company managed by a worldclass management and professional team who collectively own 26% of thebusiness. The Company's mission is to help its clients improve their businessefficiency and customer satisfaction through smarter Internet applications.
For more information, please visit www.geong.com
GNG.L (GNG)