Boyuan Convertible Debenture Amendments Take Effect

TORONTO, July 2, 2015 /CNW/ - Boyuan Construction Group, Inc. ("Boyuan" or the "Company") (TSX: BOY, BOY.DB.A), a growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that the amendments to its 10.0% convertible unsecured subordinated debentures due October 31, 2015 (the "Debentures") took effect on July 1, 2015.  The amended Debentures have the following principal terms:

(i)      

interest rate increased to 11.5% from 10.0% on and from July 1, 2015;

(ii)    

Debenture holders provided with a retraction right to require the Company to repurchase Debentures on certain dates (as described below);

(iii)    

conversion price decreased from $2.60 to $1.00 per share of the Company;

(iv)   

maturity date of the Debentures extended from October 31, 2015 to October 31, 2018; and

(v)     

restricted redemption period extended to October 31, 2016.

Other than the foregoing amendments, the terms of the Debentures remain unchanged.

Under the amended Debentures, holders have a retraction right to require the Company to repurchase Debentures at a price equal to 100% of the principal amount of the Debentures, at their request based on the following schedule:

Date of Repurchase

Deadline to Exercise
Retraction Right by Registered
Debentureholder

Maximum Aggregate Principal
Amount to be Repurchased

October 31, 2015

August 31, 2015

$5,000,000

October 31, 2016

August 31, 2016

$1,500,000

October 31, 2017

August 31, 2017

$1,500,000

The first retraction date is October 31, 2015, and the notice period for exercising the first redemption right is now open.  A registered Debentureholder must submit its retraction request by August 31, 2015 in order to exercise the retraction right.  Beneficial Debentureholders should contact their brokers/dealers well before August 31, 2015 and follow their instructions on how to exercise the retraction right as beneficial holders.  The maximum aggregate principal of Debentures to be retracted on October 31, 2015 is $5,000,000, which will be allocated on a pro rata basis if retraction request exceed the maximum amount.

About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2014, Boyuan completed 45 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information visit www.boyuangroup.com.

SOURCE Boyuan Construction Group, Inc.

For further information: Boyuan Construction Group, Inc., Mr. Paul Law, CFO, +(852) 9329 5088, paullaw@zjboyuan.com.cn; TMX Equicom, Ms. Renée Lam, (416) 815-0700 ext. 258, rlam@tmxequicom.com


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