Luye Pharma Group (HKG:2186) said a wholly owned unit completed the issue of $150 million in exchangeable preference shares to an independent subscriber, according to a Hong Kong bourse filing Friday.

Shares of the pharma company fell over 3% in late-morning trade Monday.

The shares, priced at $100 each, can be exchanged into Boan Biotech (HKG:6955) shares at an initial exchange price of HK$11.718. Upon full exchange, Boan Biotech would cease to be a subsidiary.

Dividends on the preference shares are fixed at 4.75% per annum, the firm previously said.