TORONTO, Sept. 23, 2014 /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 a principal amount of CAD6,000,000 (the "Debentures") from September 19, 2014 to September 19, 2015. The Company also reports that the term of its unsecured revolving loan from Sunford Finance (HK) Limited (the "Loan") has been lengthened from September 30, 2014 to March 31, 2015.
The terms and conditions of the Debentures were also amended to remove all conversion and redemption features. The Company will have a right for early repayment before the maturity date. The interest rate of the Debentures and the payment of the arrangement fee of 1% of the principal amount of the Debentures remain unchanged. As of September 19, 2014, the Debentures, of which CAD4,500,000 in principal 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, are not convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary entity of the Company, or otherwise participating in nature. Dr. Jonathan Koon Shum Choi remains the largest controlling shareholder of the Company and there has been no material effect on the control of the Company. Mr. Michael Koon Ming Choi is related to Dr. Jonathan Koon Shum Choi and both of them are directors of the Company. Dr. Jonathan Koon Shum Choi also controls Sunford Finance (HK) Limited.
An independent committee of the Company's Board of Directors was established to consider the extension and amendments to the Debentures and the Loan. The independent committee considered and recommended the extension and amendments to the Company's Board of Directors. The Board further considered and then approved the extension and amendments to the Debentures and the extension of the Loan. The Company executed both the Debentures amendment agreement and the Loan extension letter on September 19, 2014.
The Debentures and the Loan each constitutes a related party transaction that complies with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") with the Company relying on the exemption from minority approval requirements as set out in Section 5.7(1)(f) of MI 61-101. There was less than 21 days between the date of filing the related material change report and the extensions of the Debentures and the Loan because the Company and the lenders required time to negotiate the amendment and extension terms.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Founded in 1990 and backed by prominent Hong Kong based conglomerate, Sunwah Group, a key element of the Company's growth strategy involves identifying and advancing select international opportunities that are poised to benefit from proliferating consumerism in China and development in key areas of Southeast Asia. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 24-year track record and an extensive relationship/strategic investor network throughout Asia. The Company operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
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 188. 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, the Company is listed on the Toronto Stock Exchange under the symbol SWH.
SOURCE: Sunwah International Limited
For further information: Kristen Humphrey, Sunwah International Limited, (416) 888-2323, firstname.lastname@example.org.