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CNR closes USD15m convertible bond offering

23 December 2013

China Metro-Rural Holdings Ltd. (NYSE: CNR) said it has closed USD15,000,000 principal amount, ten per cent. convertible bonds due 2016 convertible into ordinary shares of the company at an initial conversion price of USD1.3 per share, in a private placement.

A major shareholder was issued USD5m worth of the shares, and the remainder went to certain independent third parties. In addition, the major shareholder and one of the investors have committed to purchase further USD10m and USD5m convertible bonds, respectively, with the same terms of from the company within the 90 days of the closing.

The use of proceeds is intended for provision of start-up capital for a property development project in Zhoukou City, of Henan Province of the PRC. The Bonds are convertible during their entire tenure and holders of the Bonds may redeem the Bonds early after 18 months.

China Metro-Rural Holdings Ltd. is a leading agricultural logistics platform development and rural-urban migration and city re-development company in China.


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