TORONTO, March 31, 2016 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, announces that it has extended the term of its unsecured revolving loan from Sunford Finance (HK) Limited (the "Loan") for one year from March 31, 2016 to March 31, 2017.
The Company's wholly owned subsidiary, Sunwah International Financial Services Limited, initially obtained the Loan on September 30, 2013 from Sunford Finance (HK) Limited ("Sunford Finance") to be used by the Company for general working capital purposes. The Loan was for a principal amount of up to HK$8,000,000, bore an interest rate of 12% per annum and had a maturity term of one year. On September 19, 2014, the parties entered into a Loan extension letter extending the Loan term for six months from September 30, 2014 to March 31, 2015. On March 27, 2015, the parties signed another extension letter agreeing to extend the Loan term for one year to March 31, 2016. On September 18, 2015, the parties signed an amendment letter agreeing to increase the amount of the Loan from up to HK$8,000,000 to up to HK$12,000,000. On March 23, 2016, the parties signed an extension letter agreeing to extend the Loan term for another one year to March 31, 2017.
The Loan is deemed a related party transaction as Sunford Finance is a company controlled by Dr. Jonathan Choi, who is also the Chairman and controlling shareholder of the Company. The transaction is exempt from requiring minority approval as set out in Section 5.7(1)(f) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.
There was less than 21 days between the filing date of the related material change report and the extension of the Loan as the Company and Sunford Finance required time to negotiate the extension terms.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a strategically positioned asset-based financial services provider, focused on linking the global investment community with Asia's highest growth economic regions. 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 Asia. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 25-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, Sunwah International 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, [email protected].