Jade Road Investments Limited UPDATE ON FOOK LAM MOON HOLDINGS (9589V)

TIDMJADE

RNS Number : 9589V

Jade Road Investments Limited

17 December 2021

17 December 2021

JADE ROAD INVESTMENTS LIMITED

(" Jade Road Investments ", " JADE ", the " Company " or the " Group ")

UPDATE ON FOOK LAM MOON HOLDINGS ("FLM")

Jade Road Investments Limited (AIM: JADE), the London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns provides the following update with respect to its investment in FLM.

-- The Company holds a Convertible Bond of US$26.5 million in Fook Lam Moon Holdings. The Convertible Bond has a maturity of 5 years ending November 2023 and pays a coupon of 5.0% per annum (3.0% paid in cash with the remainder rolled up with the principal amount outstanding).

-- As of 30 June 2021, the carrying value of the Convertible Bond was US$29.1 million taking into account the current face value of the instrument, accrued PIK interest and cash interest receivable, less an Expected Credit Loss ("ECL") provision of US$0.7 million against aged cash interest receivables accounting for approximately 27% of the Company's Net Asset Value as at 30 June 2021.

-- The Company has recently become aware that the underlying group structure of FLM may have changed such that FLM is no longer the 71% owned controlling shareholder in the Hong Kong based restaurant group ('the Restaurant Group').

-- The Company and its Investment Manager are actively working to secure more information to clearly understand what potential impact this ownership change may have on the value attributed to the Convertible Bond and the level of any new ownership in the Restaurant Group .

-- In order to be prudent, at this point in time, the Company believes it likely that a provision may be taken against the Convertible Bond ranging from a partial to a full provision in its 2021 year end accounts.

-- T he Company will also explore all legal options available to it under the Convertible Bond documentation if its rights to knowledge of and possible consents to a disposal of a controlling stake in the Restaurant Group have been breached and will consider all courses of action to protect its interest as more information comes to light.

   --     The Company will provide relevant updates upon further information becoming available. 

For further information on JADE, please visit the Company's website at www.jaderoadinvestments.com and follow the Company on Twitter (@ JadeFinance ).

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
 Jade Road Investments Limited                [phone] 
 John Croft 
 
 WH Ireland Limited - Nominated 
  Adviser                                     [phone] 
 James Joyce 
 Andrew de Andrade 
 
 Hybridan LLP - Corporate Broker              [phone] 
 Claire Noyce 
 
 Lionsgate Communications - Communications 
  Adviser                                     [phone] 
 Jonathan Charles 
 
 

About Jade Road Investments

Jade Road Investments Limited is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk-adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well-diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income-generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property.

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December 17, 2021 02:00 ET (07:00 GMT)