[Caihua News] Lianyang Intelligent Holdings (01561.HK) announced that the prerequisites for delivery set out in the placing agreement have been met, and delivery has taken place on December 22, 2021, and the bond issue has been successfully completed. In view of the current market sentiment, the total principal of the successful placing of the bonds (i.e. HK $46 million) is less than the proposed maximum amount of HK $270 million. The Notes have been successfully placed to not less than six Placees.
The net proceeds from the placing (after deducting commissions and other related expenses) are estimated to be approximately HK $43.5 million, equivalent to the net issue price of approximately HK $2.27 per conversion share (based on the initial conversion price). The Group intends to use the net proceeds from the placement of approximately 20.0% or approximately HK $8.7 million for business in the new economy industries operated by the Development Group, including, but not limited to, the provision of artificial intelligence "AI"-driven algorithm solutions to retail financial services providers in China, especially in consumer financing and commercial insurance applications. About 80.0% or about HK $34.8 million will be used for general working capital and debt management.
Assuming that the bonds with a total principal of HK $46 million are converted in full at the initial conversion price of HK $2.40 per share (that is, without adjustment) and no further shares are issued, the bonds will be converted into 19.1667 million shares (with a total nominal value of HK $191700). It is equivalent to about 2.52% of the issued share capital of the company as at the date of this announcement and 2.46% of the issued share capital of the company after the conversion of all the bonds on the date of this announcement.