China-based Phoenix New Media Limited (NYSE: FENG) board of directors has authorized the company to revise and extend the term of two loans previously granted to Particle Inc. from six months to 12 months, the company said.
One of these loans with a principal amount of USUSD 14.8m was granted in August 2016 and will mature in August 2017 after the extension.
The other loan with a principal amount of approximately USD 6.8m (equivalent of approximately RMB46m) was granted in November 2016 and will mature in November 2017 after the extension.
The remaining RMB74m of loan that the company´s board of directors previously authorized the company to grant to Particle was granted on January 20, 2017 and has a term of 12 months as well. Particle may, with prior notice to the company, prepay all or any portion of the loans granted in November 2016 and January 2017.
In connection with the extension, Particle has granted the company the right to convert, at the company´s option, all or a portion of the August 2016 Loan (including principal and interests) into Series D1 preferred shares to be issued by Particle on or before August 9, 2017.
Particle owns Yidian Zixun, a rapidly growing personalized news and life-style information application in China, which allows users to efficiently define and explore individualized content over mobile devices. The company currently owns approximately 47.8% of the total outstanding shares of Particle and will be able to consolidate Particle´s financial statements into the company once Yidian´s user base reaches a certain level.
Phoenix New Media Limited provides premium content on an integrated platform across Internet, mobile and TV channels in China.