China Innovation Investment (01217) and Yiren Yifang Holdings (08305) jointly announced on January 2, 2024...
According to Zhitong Finance App, China Innovation Investment (01217) and China Renren Yifang Holdings (08305) jointly announced that on January 26, 2024, China Innovation and China Innovation signed a subscription agreement with the terms and conditions subject to the terms and conditions under the subscription agreement. China Innovation agreed to issue to China Innovation, and China Innovation agreed to subscribe to the issuer, a 5% secured ordinary bond (bond) with a total principal amount of HK$40 million.
On the same day, China Innovation and Advanced Pacific Enterprises Limited (Mortantors), the controlling shareholder, signed a “Equity Mortgage Agreement for 535.5 million shares of Yibang Yifang Holdings Co., Ltd.” The details relating to the grantor's agreement to hold 535.5 million common shares (mortgaged shares), accounting for 51% of the total issued share capital by China Innovation, as a collateral guarantee for the timely and full repayment of arrears under the bonds and fulfilment of its obligations under the bonds. While the bonds are still not redeemed, China Innovation can enjoy 50% of the dividend of the collateral shares; if the mortgagee sells the collateral shares while the bonds are still not redeemed, China Innovation can obtain 50% of the proceeds from the sale of the collateral shares greater than HK$0.06.
The reason why the two sides reached the above deal is that China Innovation has rich experience in the construction industry, and the companies China Innovation invests in in the mainland have resources in the construction industry. Cooperation between China Innovation and Loren can help China Innovation develop and expand its business in the mainland.