China Greenland Broad Lvze (01253) announced that the stock exchange agreement and settlement agreement are aimed at significantly reducing its overall offshore debt level.
As at 31 July 2023, the outstanding debt (including accrued interest) owed by Greenland Finance was approximately US $39.1 million (equivalent to approximately HK $307 million). On September 27, 2023 (after trading hours), the company entered into a share swap agreement with Greenland Financial, under which the company agreed to allot and issue 1.979 billion conversion shares to Greenland Financial. It accounts for about 33.99% of the issued share capital expanded by the allotment and issue of conversion shares and settlement shares, and the issue price is HK $0.10 per conversion share, a discount of about 16.67% from the closing price of HK $0.120 on September 27, 2023. To settle about HK $198 million of the total outstanding debt (including accrued interest) payable to Greenland Finance.
The total outstanding debt (including accrued interest) owed by the Group to its creditors on July 31, 2023 was approximately 46.5 million yuan (equivalent to about HK $50 million). On September 27, 2023 (after trading hours), the company entered into a settlement agreement with its creditors on basically the same terms. Under the settlement agreement, the company agrees to allot and issue a total of approximately 500 million settlement shares to creditors, accounting for approximately 8.59% of the issued share capital expanded by the allotment and issue of conversion shares and settlement shares at an issue price of HK $0.1 per settlement share, to settle the corresponding amount of outstanding obligations (including accrued interest) due to creditors as at the date of this joint announcement.