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QT Vascular issues shares to bondholders in lieu of cash repayment
QT Vascular entered into a bond payment and share issuance deed for the first tranche of the US$13.14 million 8 per cent convertible bonds due 2017/2018.
The first tranche of US$5.475 million bonds is due for repayment on Feb 6, 2017.
Under the Bond Repayment and Share Issuance Deed, the company and bondholders have agreed that the bondholders shall accept, in lieu of cash repayment, the allotment and issue of an aggregate 108,075,188 new ordinary shares in the capital of the company at an issue price of S$0.06876 per share.
For agreeing to waive cash payment, QT Vascular will pay to bondholders an aggregate additional amount of US$512,500, equivalent to 10 per cent of the due amount. The additional amount will also be satisfied by allotting and issuing an aggregate 10,807,518 additional shares to the bondholders at the issue price.
QT Vascular said that the issuance of shares to settle the due amount will conserve its cash resources for its business.
On completion of the allotment and issuance of 118,882,706 Shares, QT Vascular's issued and paid-up share capital will increase from 1,052,293,209 shares to 1,171,175,915 shares. The new shares represents 11.3 per cent of the existing share capital and approximately 10.15 per cent of the enlarged share capital.
The issue price represents a discount of approximately 10 per cent to the volume weighted average price of S$0.0764 as traded on Catalist on Jan 18.