China Health Group (HKG:0673) entered into a letter of intent wherein Ample Colour may invest at least HK$50 million in the company through a share subscription.
Ample Colour's owner, Ying Wei, already holds 3.3% of the company's shares, according to a Wednesday Hong Kong bourse filing. Ying was a former non-executive director of China Health.
Under the LOI, the parties will negotiate to finalize the terms of the potential subscription.
On another front, the company has decided not to appeal against an appeal judgment instructing it to pay a claim amount of $4 million to Capital Foresight for a prior loan bond.
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