China Success Finance Group (HKG:3623) agreed to subscribe for $4 million of a three-year exchangeable bond issued by Rakesh Rajagopal and carrying a 16% coupon rate, a May 2 filing with the Hong Kong bourse said.
Upon exercise of the exchangeable rights under the exchangeable bond in full, the bond will be exchanged into 1% of the total issued share capital of Coin Cove, which is 80%-owned by the issuer.
$1 million of the consideration for the subscription will be fulfilled from the proceeds of a share placement. The firm entered into an agreement to place up to 77 million shares at HK$0.7 apiece on the same day.
The remaining consideration will be satisfied through the allotment and issue of 33,428,000 shares in the company to the issuer at HK$0.7 apiece.
The consideration shares represent approximately 5.71% of the financial services provider's enlarged issued share capital.
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