Strengthen Financial Status and Actively Seeking for Diversified Growth
HONG KONG, May 3, 2016 - (ACN Newswire) - E-Rental Car Company Limited ("E-Rental" or the "Company"; stock code: 1822), a company listed in Hong Kong, announced that the Group has entered into a subscription agreement with Topsource International Holding Co., Limited ("Topsource International") to issue 5% unsecured convertible bonds in the principal amount of HK$200 million. Pursuant to the agreement, assuming HK$100 million of the 2-year convertible bonds and the rest of the 3-year convertible bonds both at an initial conversion price of HK$0.35 per share, the convertible bonds will be convertible into approximately 571 million conversion shares, representing approximately 8.82% and 8.10% of the existing issued share capital and the issued share capital as enlarged by the issue of the conversion shares respectively.
Topsource International Holding Co., Limited, a company beneficially-owned by ShanghaiXinhua Publishing Group Limited, is mainly engaged in investment, asset management, books and AV products distribution.
Ms. Wu Qiong, CEO of E-Rental Car, said, "The issuance of convertible bonds will be used as general working capital and the purpose of financing future acquisitions, as well as strengthening the Group's financial status to cope with its business strategy. We have been committed to the development of existing business, while actively seeking to diversify the business growth and improve the Group's overall financial situation in the future. To achieve this goal, we has successfully applied and obtained the money lender license through a wholly-owned subsidiary in Hong Kong to operate business."
About E-Rental Car Company Limited (Stock code: 1822)
E-Rental Car Company Limited got listed on the Hong Kong Stock Exchange in December 2009. The Company expedited its strategic transformation and actively implemented its business diversification for growth and overall improvement of the financial performance. In addition to electronic components/materials business, the Company expanded its business to car rental business in China as well as financing services.
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