4th Apr 2025 15:51
(Alliance News) - Honye Financial Services Ltd on Friday said it has executed a convertible loan note instrument constituting up to GBP1.5 million.
The CLNs give the company more working capital, particularly to help it finish the reverse takeover deal with Zoyo Group.
The Grand Cayman, Cayman Islands-based group looks for acquisition prospects in the 'fintech' and financial services industries.
The convertible loan notes have a three-year term and accrue interest at a rate of 6% annually, which is determined by taking into account the principal amount owed on the notes from time to time.
The group have said that this interest will be rolled up and paid on the earlier of the notes' conversion and the date on which the notes, along with any interest that has accrued and any outstanding amounts, become due and payable by the borrower.
This date is the 36-month anniversary of the date the relevant certificate is issued for each tranche, unless the notes have been redeemed, converted, or cancelled in accordance with the CLN's terms under the maturity date.
The company added that at any point after they complete a reverse takeover transaction with Zoyo and before the maturity date, the notes may be converted in whole or in part at the note holders' discretion, at a price per conversion share equal to issue price of consideration shares at the conclusion of the RTO.
According to the company, the CLNs must be paid back in full in cash on the maturity date, along with any interest that has accumulated, if they are not repaid, redeemed or converted by then.
As of Friday, Gu Qian, a "high-net-worth individual living in Asia", has subscribed for the first tranche of GBP500,000 of the issued convertible loan notes.
Regarding their previously disclosed investments in the company, the group is following up with Tang Investment No 1 Ltd and Abdullah Alnuwaysir. The company will be giving an update on this in the coming days.
Executive Director of Honye Liu Yu Xing said: "This investment from Gu underscores her commitment, confidence, and strong support for the ongoing RTO, reflecting a shared belief in the strategic vision and future success of our company."
Honye shares were untraded on Friday and were last traded at 45 pence in London.
By Olivia Mason-Myhill, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Honye Fin.serv.