Jiutai Digital closes $2.7M convertible bond issue in Hong Kong
What's the deal? Jiutai Digital TechnologyDealroom has a profile for this one. Try Dealroom → said on September 29 it completed a convertible bond issue with total principal of US$2.54M (roughly $2.7 million). The company confirmed all conditions precedent under the subscription agreement had been met.
The terms: The bonds were issued under the company's general mandate, with an initial conversion price of US$0.01 per share.
What it means for the share count: Full conversion would create 174,877,360 new shares, equal to about 20.00% of Jiutai Digital's existing issued share capital. On an enlarged basis, that would represent roughly 16.67%.
Why now? The completion follows subscription and clarification announcements the company published on September 17 and September 18.
Board update: The company also disclosed its current board composition. Executive directors are Yu Huang, Wang Ochoa Longhai, and Qu Xuanbai; non-executive directors are Zheng Jingyun and Chen Junrong; independent non-executive directors are Wang Shiling, Zhou Fenli, and Huang Chunlian.
The signal: Convertible bonds let smaller Hong Kong-listed firms raise capital while deferring dilution until conversion. For Jiutai Digital, the structure secures funds now against equity that only converts later, and at a fixed price.
Read more: gplp.cn
Image credit: Ray Devlin
