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QT Vascular reaches agreement to repay its bonds in shares
MEDICAL technology firm QT Vascular has entered into a bond settlement deed to repay part of the final tranche of its US$13.14 million convertible bonds due 2017/2018 in shares, and to delay the balance payment.
Under the bond agreement signed in July 2015, the third and final tranche of US$2.19 million bonds was due for repayment on Sept 30 this year.
The group said on Monday evening that it has entered into an agreement with certain bondholders - four individuals named Toe Teow Heng, Kuah Ann Thia, Malcolm Koo Chin Wei and Ho Kin Yan - on a settlement sum of US$1.36 million, to be partly paid for by shares and partly in cash.
In lieu of cash payment of US$340,000, these bondholders will accept 42.2 million new ordinary shares at an issue price of 1.08 Singapore cents. The price represents a discount of 10 per cent to the shares' price of 1.2 cents on Nov 27.
The remaining outstanding amount of US$1.02 million from the settlement amount will be payable by Jan 31 next year, with this amount bearing interest of 8 per cent a year from Oct 1 this year.
With this, the total remaining amount due to the other bondholders in respect of the bonds is US$2.555 million. QT Vascular said that it will continue to negotiate with these bondholders for settlement via cash or shares, or to ask for an extension in the maturity.
The firm said that the repayment and share issuance deed is in the best interest of the company as it will enable the company to settle a quarter of the settlement amount in shares, and conserve its valuable cash resources for its businesses.
It also further aligns the interests of these bondholders with the company's shareholders, and demonstrates their confidence in the future and prospects of the company, added QT Vascular.