REG - Jade Road Investmnts - UPDATE ON FOOK LAM MOON HOLDINGS

Jade Road InvestmentsAnnouncement

17/12/2021 07:00

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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.

·    The 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                      +44 (0) 778 531 5588
 John Croft

 WH Ireland Limited - Nominated Adviser             +44 (0) 20 7220 1666
 James Joyce
 Andrew de Andrade

 Hybridan LLP - Corporate Broker                    +44 (0) 203 764 2341
 Claire Noyce

 Lionsgate Communications - Communications Adviser  +44 (0) 779 189 2509
 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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