RNS Number : 7237Y
LED International Holdings Ltd
08 September 2009
08 September 2009
LED International Holdings Limited
("LED" or the "Company")
Issue of Convertible Loan Notes
The board of directors of LED (AIM: LED) (the "Board") today announces that Mr Thomas Li, the Company's Executive Chairman, has agreed to provide a loan to the Company of HK$2,500,000 (approximately £197,000). Mr Li has lent to the Company since November 2008 (approximately £739,000) and it has been agreed with Mr Li that of this sum, HK$8,500,000 (approximately £670,000) shall continue to be available to the Company via the issue of convertible loan notes (the "Loan Notes") to him (the "Transaction"), as described below.
The loan of HK$2,500,000 will be used to support the Company's working capital position pending receipt of the final sum of HK$8,000,000 (approximately £630,000) due to the Company in respect of the North Point Project, where technical issues have delayed payment to date and the Board does not expect to receive this sum within the next three months. The outstanding loan, amounting to HK$ 3,379,000 (approximately £266,000) due to Mr Li will attract interest of 4 per cent. above 3 month LIBOR under a separate loan agreement entered into between the Company and Mr Li.
The Loan Notes are convertible into ordinary shares of LED (the "Ordinary Shares") on the second anniversary of the date of issue, at a 10 per cent. discount to the volume weighted average price for the 30 days immediately preceding the date of conversion. The Loan Notes are transferable and can be repaid prior to conversion at the discretion of the Company and without penalty.
Mr Li, as subscriber for the Loan Notes, is deemed to be a related party in accordance with the AIM Rules for Companies. Accordingly, the independent directors of LED, being all the directors other than Mr. Li, consider, having consulted with Strand Partners Limited ("Strand Partners"), that the terms of the issue of the Loan Notes are fair and reasonable insofar as the Company's shareholders are concerned. Strand Partners has taken into account the independent directors' commercial assessment of the Transaction.
LED Deputy CEO, Mr Dennis Ow commented:
"The Board remains confident of the Company's strength and prospects. We continue to focus our efforts on developing opportunities both within China and internationally. The funding provides working capital to enable LED to continue with the development of its business."
*ENDS**
For further information:
LED International Holdings Limited
Dennis Ow, Deputy Chief Executive Officer +852 2810 4470
Strand Partners Limited
James Harris / James Spinney +44 (0) 207 049 3494
Notes to Editors:
LED International Holdings Limited and its subsidiaries specialise in the development, manufacture and sale of low powered / low maintenance LED screens and other LED products such as outdoor signs, lamps, lighting and building illumination. The screens are manufactured in a 'building block' format to a specific design, which allows screens to be assembled to suit a customer's size and definition specifications.
This design also ensures that the screens are relatively easy to transport and assemble. Based in Hong Kong, the Company's primary market has been the People's Republic of China ('PRC'), but it has also supplied end products to Macau, Japan and the USA. Part of the Company's strategy in 2007 was to widen its customer base to markets outside PRC.
The Company was originally listed on AIM, a market operated by the London Stock Exchange, on 23 October 2006. For more information, please visit: http://www.led-intl.com
This information is provided by RNS
The company news service from the London Stock Exchange
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