SMI issues HK$78M of Convertible Bonds

SMI issues HK$78M of Convertible Bonds

HONG KONG, Dec. 12, 2014 /PRNewswire/ -- SMI Holdings Group Limited ("SMI" or the "Company" and its subsidiaries, collectively the "Group", HKEx: 198), one of the largest cinema operators inChina, announced today that it has entered into subscription agreements with GuangDong Infore Investment Partnership Enterprise ("GuangDong Infore") and Wisdomont Investments Holdings Limited ("Wisdomont") respectively to issue convertible bonds of an aggregate principal amount of up to approximatelyHK$78,020,000.  

The two tranches of convertible bonds are due three years from the issue date, at an initial conversion price ofHK$0.34 per conversion share. The initial conversion price represents: (i) a premium of about 23.64% over the closing price ofHK$0.275 per share as quoted on the Stock Exchange of Hong Kong on the date of the subscription agreements, and (ii) a premium of about 18.88% over the average closing price ofHK$0.286 per share as quoted on the Stock Exchange ofHong Kong for the 5 consecutive trading days up to and including the last trading day prior to the date of the subscription agreements. The convertible bonds shall bear interest at the rate of 7% per annum payable every six months. The Company will redeem all of the convertible bonds on the maturity date that would yield an annual return of 10% per annum.

A total of 229,471,215 conversion shares will be allotted and issued upon exercise of the conversion rights attaching to the convertible bonds in full, which represent approximately 2.26% of the existing issued share capital of the Company and approximately 2.21% of the issued share capital of the Company as enlarged by the issue of the Conversion Shares.

According to the First Subscription Agreement with GuangDong Infore, GuangDong Infore agreed to subscribe in cash for the Convertible Bonds I of an aggregate principal amount of up toRMB30,000,000 (equivalent to approximately HK$38,028,000). Founded in 1994, GuangDong Infore is belonged to Infore Group which is a core affiliated enterprise of Midea Group. It is principally engaged in finance, retailing and manufacturing.

According to the Second Subscription Agreement with Wisdomont, Wisdomont agreed to subscribe in cash for the Convertible Bonds II of an aggregate principal amount of up toUS$5,160,000 (equivalent to approximately HK$39,992,000).

Mr. Cheng Chi Chung, Chief Executive Officer of SMI, said, "The Group has been actively developing its new complementary business, which includes Xingmeihui. Raising funds by the issuance of the Convertible Bonds represent an opportunity for the Company to enhance its working capital, strengthen its capital base and financial position."

About SMI Holdings Group Limited (0198.HK)

SMI Holdings Limited (0198.HK) is a company listed on the Main Board of the Stock Exchange ofHong Kong. The Company is principally engaged in the business of cinema operating and new complementary business, such as Xingmeihui and advertising & promotion business. Under its strong management team and powerful business network, the number of SMI's cinemas has grown from 3 in 2009 to 83 by the end ofJune 2014.



SOURCE SMI Holdings Group Limited

SMI Holdings Group Limited


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