Adamas Finance Asia Limited Update on Global Pharm Convertible Bond (1966N)

TIDMADAM

RNS Number : 1966N

Adamas Finance Asia Limited

04 August 2017

Adamas Finance Asia Limited

("ADAM" or the "Company")

UPDATE ON GLOBAL PHARM CONVERTIBLE BOND

The Company is announcing an update on the redemption of the remainder of the convertible bond owed by Global Pharm Holdings Group Inc. ("Global Pharm") (the "Convertible Bond").

Global Pharm has, to date, made payments of approximately US$6.01 million (net to ADAM) to offset against the original redemption amount of the Convertible Bond of approximately US$25.05 million (net to ADAM). In the Company's audited accounts for the year ended 31 December 2016, the carrying value of the Convertible Bond was written down to US$17.3 million.

As a result of the continuing failure of Global Pharm to make payments in redemption of the Convertible Bond, the Company instructed a leading law firm in Hong Kong to advise on the actions available to enforce payment. The work by the lawyers included the commissioning of an investigative agency to report on Global Pharm and its chairman.

The report from the lawyers has been received and the advice is that the Company should consider taking steps to enforce the available collateral, namely charges over shares in Global Pharm held by, as well as a personal guarantee from, the chairman. It should be noted that the investigative agency has not yet been able to identify the exact location of the chairman.

The Company will take all appropriate action to recover the monies owed under the Convertible Bond but, in light of the report from the lawyers, the amount of ultimate recovery is in doubt.

This Announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

 
 Adamas Finance Asia Limited 
 John Croft                     [phone] 
 
 WH Ireland Limited - Nominated Adviser 
                                    [phone] 
                                               6600 
 Tim Feather                        [phone] 
  Ed Allsopp                                   3444 
 
 finnCap Limited - Broker 
 William Marle                      [phone] 
  Grant Bergman                                0500 
 
 First City Public Relations 
  (Hong Kong)                        [phone] 
 Allan Piper                    [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 04, 2017 10:36 ET (14:36 GMT)