SOUTHGOBI (SEHK: 1878) has announced the completion of a share issuance to satisfy a payment-in-kind interest requirement.
The company issued a total of 73,497,622 common shares to Xingyue Haohan International Trade Co., Ltd. (the "Assignee"). These shares, representing approximately 19.83% of the company's issued and outstanding common shares post-issuance, were issued to fulfill the payment-in-kind interest obligation.
The number of shares issued was determined based on a 50-day volume-weighted average price of approximately C$0.3272 per common share as of the issuance date. The shares were issued to the Assignee under the terms of a transfer agreement.
According to this agreement, JD Zhixing Fund L.P. transferred its right to receive the assigned payment-in-kind interest to the Assignee. A remaining balance of US$2 million of the assigned interest is still outstanding.
Under the terms of the convertible bonds and related deferral agreements, the Assignee retains the right to require the company to settle this remaining balance by issuing additional common shares. The number of shares would be calculated by dividing the outstanding amount by the 50-day volume-weighted average price of the common shares as of the date the Assignee makes such a request.
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