REG - Jade Road Investmnts - US Dollar-denominated Corporate Bonds

Jade Road InvestmentsAnnouncement

01/12/2022 11:30

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RNS Number : 2721I  Jade Road Investments Limited  01 December 2022

1 December 2022

JADE ROAD INVESTMENTS LIMITED

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

 

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 concerning its US Dollar-denominated secured debt, issued as
loan notes with a 12.5% coupon ("Loan Notes").

 

Further to discussions with all Loan Note holders ("Noteholders"), the Company
has agreed the following changes to the structure of the Notes with
Noteholders:

•       extended maturity of the Loan Notes issued to 31 December
2023;

•       increased the interest rate payable on the principal amount of
the Loan Notes outstanding to 15% per annum from the date of the Supplemental
Instrument;

•       increased the interest rate payable on the principal amount of
the outstanding Loan Notes to 16% per annum where US$1,800,000 or more of the
principal amount of the Loan Notes remains outstanding by 30 June 2023;

•       a "priority return" provision requiring the Company to utilise
proceeds received by it pursuant to an equity placing of more than
£10,000,000 ("Qualifying Placing") or sale of any company, body corporate,
asset, instrument, or undertaking (including any contractual rights) within
the Company's existing portfolio ("Asset Sale") in making repayment on the
Notes. Any such repayment would be limited to 10% of the net proceeds received
by the Company pursuant to a Qualifying Placing, or 65% of the net proceeds
received by the Company pursuant to an Asset Sale; and

•       warrants: Loan Note holders will be issued with 3-year
warrants equivalent to 5% of the next share issuance undertaken by the Company
with a strike price which is a 50% premium to the price of such share
issuance.

The Company has received the required formal consent of Noteholders to these
terms and accordingly has today executed a supplemental loan note instrument
and warrant instrument.

 

 

 

 

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, and
is 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. 

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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