Adamas Finance Asia Limited Proposed New Investment (9795M)

TIDMADAM

RNS Number : 9795M

Adamas Finance Asia Limited

14 January 2019

ADAMAS FINANCE ASIA LIMITED

("ADAM" or the "Company")

PROPOSED NEW INVESTMENT

Adamas Finance Asia Limited ("ADAM" or the "Company"), the London quoted pan-Asian diversified investment vehicle, is pleased to announce a proposed new investment in PharmaJet Inc ("PharmaJet") through a convertible bond investment (the "CB"). PharmaJet has developed innovative needle-free injectors which have received United States FDA marketing clearance, CE Mark and World Health Organisation PQS certification to deliver medications and vaccines.

PharmaJet is in a partnership with Mundipharma Pte Ltd ("Mundipharma"). This distribution relationship provides the company with access to a significant number of markets to distribute its needle-free injector technology.

PharmaJet's latest round of financing is targeting to raise between USD12M to USD20M for expansion of its business, particularly focused on Asia, and a potential Initial Public Offering ("IPO"). As the lead investor, ADAM intends to subscribe up to USD5M in the PharmaJet Convertible Bond offering. ADAM has entered into a non-binding term sheet and finalisation of the investment is subject to final legal documentation. The CB has been structured with a 4-year maturity and an annual coupon of 10% (6% cash and 4% Payment-in-Kind). The bond will be drawn in tranches with the first tranche provided subject to the satisfaction of certain conditions including completion of legal due diligence and execution of binding documentation. Once issued, the bond is convertible at the discretion of its holders at a 40% discount to a pre-money valuation established by any 'liquidity' event which would include an IPO of PharmaJet.

The company is contemplating an IPO in Singapore and/or the NASDAQ in due course and subject to market conditions.

The Directors believe that this proposed investment in PharmaJet is an attractive opportunity to participate in the healthcare sector through products that have global reach and a high relevance to Asian markets.

ADAM's Chairman, John Croft, commented on the new investment:

"We are very excited with this proposed new investment in the medical devices sector which is experiencing rapid growth, particularly in Asia. PharmaJet has developed and is marketing one of the leading needle-free injection solutions on the market which competes with traditional needle-syringe delivery devices. This investment represents another example of the attractive opportunities available to ADAM in capturing fundamental growth driven by Asia via a structured instrument which will provide income and potential capital gain."

As this investment is subject to the completion of legally binding documentation, amongst other conditions, a further update will be provided in due course.

UPDATE ON FORTUNE INSIGHT PLACEMENT

Further to the Company's update in its interim results regarding the subscription of USD12.6M by Fortune Insight Limited ("Fortune") following the sale of the Company's holding in Global Pharm Holdings Group Inc. to Fortune, the Company is awaiting the subscription funds and will provide an update in due course.

Enquiries:

 
 Adamas Finance Asia Limited 
 John Croft                           [phone] 
 
 WH Ireland Limited - Nominated Adviser 
 James Joyce 
  James Sinclair Ford                [phone] 
 
 VSA Capital Limited - Corporate 
  Broker 
 Andrew Monk                         [phone] 
 Andrew Raca 
 
 Buchanan - Financial PR 
  Charles Ryland 
  Victoria Hayns 
  Henry Wilson                       [phone] 
 

About Adamas Finance Asia

ADAM is a London quoted investment company focusing on delivering long-term income and capital growth to shareholders through a diverse portfolio of pan-Asian investments. It aims to provide uncorrelated returns through a combination of capital growth and dividend income from a broad spectrum of national geographies and asset classes from the Asian Small and Medium Enterprise (SME) sector.

The company's investment manager, Harmony Capital, which has a dedicated team with real Asian expertise, is focussed on the strategy of creating income and capital growth. Harmony is sourcing predominately private opportunities and has created a strong pipeline of income generating assets from potential investments in industries such as healthcare, fintech, hospitality, IT and property across Asia.

About Mundipharma

Mundipharma, established in 1952 and headquartered in Singapore, is a global network of companies which share a common goal of identifying and accelerating the development of medicines which add value to patients and healthcare providers globally. Mundipharma employs over 8,600 people and generated annual revenues in excess of USD3.4 billion.

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January 14, 2019 02:00 ET (07:00 GMT)