Madison Holdings Group Limited (Stock Code: 08057) has reported on the latest developments regarding a loan in the principal amount of JPY1,400,000,000 owed by its indirect non-wholly owned subsidiary, Wine Financier Limited, to SRA Holdings, Inc. (SRA). The repayment deadline for this loan was previously extended to 30 September 2024. According to the newly signed Third Loan Extension Agreement, SRA has further agreed to extend the maturity date to 30 September 2031.

Under the related Third Option Agreement, Madison Holdings Group Limited conditionally grants an option to SRA at a nominal consideration of HK$1.00. This option entitles SRA to subscribe for up to 85,922,330 new shares of the company at an option price of HK$1.03 per share at any time up to 30 September 2031. The option subscription price can be settled in cash or by offsetting the outstanding principal of the loan on a dollar-for-dollar basis. The transaction is contingent upon approvals, including the company’s Extraordinary General Meeting, and the listing of the option shares on the Stock Exchange.

Company management highlights that none of the previously granted options were exercised before their respective maturity, and the loan has been repeatedly extended under successive agreements. The Board confirms it will seek shareholders’ approval to allot and issue the option shares under a specific mandate, and emphasizes that the further loan extension and the option grant remain subject to the fulfillment of various conditions precedent.

Shareholders are reminded to exercise caution when dealing in the company’s shares, as the proposed transactions may or may not proceed depending on whether the conditions are satisfied or waived.