21st Oct 2015 10:35
LONDON (Alliance News) - Adamas Finance Asia Ltd on Wednesday said it now has a revised agreement with Global Pharm Holdings Group Inc.
Under the revised deal, Global Pharm has agreed to pay no less than USD750,000 to Blazer Delight, a company 75%-owned by Adamas Finance Asia. Those payments will be offset against two payments which were due on March 31 and April 30.
The two payments, valued at USD9 million and USD13.6 million, were not made to the company in accordance with the original agreement, following an initial USD2.4 million payment made at the end of 2014. Global Pharm has since made further payments to Blazer Delight, which total USD5.44 million.
The newly agreed monthly payments remain subject to penalty interest of 26% per annum, compounded on a daily basis.
"Subject to certain limited exclusions, Global Pharm Holdings Limited, LLC, a major shareholder in Global Pharm, has undertaken to transfer shares in Global Pharm to Blazer Delight in respect of any monthly payments that are not made on time and in full," Adamas Finance Asia said.
"For each monthly payment not made on time and in full, shares equivalent to 0.00375%, net to the company, of the issued and outstanding share capital of Global Pharm, will be transferred on the first business day of each year commencing in 2016, subject to a maximum of 0.075%, net to the company," the company added.
Shares in Adamas Finance Asia last traded on September 15 at USD0.55.
By Samuel Agini; [email protected]; @samuelagini
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