Sunwah International Announces Amendment to Debentures and Extension of Revolving Loan Term
TORONTO, Sept. 22, 2017 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, announces that it has extended the maturity date of the Company's 8% unsecured debentures with an aggregate principal amount of CAD6,000,000 (the "Debentures") for one year from September 19, 2017 to September 19, 2018. Other terms and conditions of the Debentures, including its interest rate of 8% and the payment of the arrangement fee of 1% of the principal amount of the Debentures, remain unchanged.
CAD4,500,000 in principal of the Debentures is beneficially owned or controlled by Dr. Jonathan Koon Shum Choi and CAD1,500,000 in principal is beneficially owned or controlled by Mr. Michael Koon Ming Choi. Mr. Michael Koon Ming Choi is related to Dr. Jonathan Koon Shum Choi and both of them are directors of the Company.
Separately, the Company announces that it has extended the term of its unsecured revolving loan from Sunford Finance (H.K.) Limited (the "Loan") for one year from September 30, 2017 to September 30, 2018.
The Company's wholly owned subsidiary, Sunwah International Financial Services Limited, initially obtained the Loan on September 30, 2013 from Sunford Finance (H.K.) Limited to be used by the Company for general working capital purposes. The Loan bore an interest rate of 12% per annum. On September 19, 2015, the parties signed an amendment letter agreeing to increase the amount of the Loan from HK$8,000,000 to HK$12,000,000.
The Debentures and the Loan each constitutes a related party transaction that comply with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemption from minority approval requirements as set out in Section 5.7(1)(f) of MI 61-101.
The Company was not in a position to file a material change report more than 21 days in advance of confirming the amendments of the Debentures and the extension of the Loan as the parties had not agreed to the amendment of the Debentures and the extension of the Loan until September 19, 2017
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a Hong Kong based financial services provider, focused on linking the international investment community with Asia's highest growth economic regions. The organization's primary Hong Kong based subsidiary, Sunwah Kingsway Capital Holdings Limited, is listed on the Stock Exchange of Hong Kong under the stock code 00188. Sunwah Kingsway is licensed to provide a range of financial solutions in Hong Kong and abroad that include award-winning brokerage services and innovative corporate finance offerings.
Founded in 1990, Sunwah International represents the financial services division of Sunwah Group, one of Asia's most prominent multi-national conglomerates.
SOURCE Sunwah International Limited
Kristen Humphrey, Sunwah International Limited, (416) 888-2323, [email protected].
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