TORONTO, Sept. 30, 2013 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced the closing of an HK$8 million unsecured revolving loan facility with Sunford Finance (HK) Limited to be used by the Company for general working capital purposes. Sunford Finance is a company controlled by Dr. Jonathan Choi, who is also the Chairman and controlling shareholder of the Company.
Under the terms of the related party transaction, Sunford Finance will provide Sunwah International with up to HK$8 million available for drawdown for one year following the agreement's execution on September 30, 2013. The revolving facility bears an interest rate of 12% per annum on the basis of a 365-day year, with interest on the amounts drawn accruing daily and payable in arrears on the last day of each month. Sunwah International will pay a stand-by fee of a sum equal to 1% of the loan facility to Sunford Finance upon the first drawdown of the loan facility. Sunwah International will use the loan facility to finance its short term funding requirements.
This related party transaction complies with Multilateral Instrument 61-101 - Protection of Minority Security Holdings in Special Transactions ("MI 61-101") with the Company relying on the exemption from minority approval requirements for a related party transaction as set out in Section 5.7(1)(f) of MI 61-101. There will be less than 21 days between the date of filing any material change report and the completion of the loan facility because the Company needs to satisfy its short term funding requirements in accordance with its business plan.
About Sunwah International Limited
Sunwah International is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Leveraging a 20-year track record and significant relationships throughout Asia, Sunwah International is now positioned into three integrated divisions: Capital Markets Group, consisting of brokerage and financial services, including investment banking; Strategic Investment Group, a merchant bank focused on mining and natural resources; and our Asset Management Group specializing in private equity funds. The organization's primary subsidiary, Sunwah Kingsway Capital Holdings Limited is based in Hong Kong and listed on The Stock Exchange of Hong Kong. The Sunwah Kingsway group of companies comprises Sunwah International's primary operating subsidiaries and is licensed to provide a range of financial services. Sunwah International operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
China is widely recognized as an increasingly important player on the world's financial stage. As the country continues to grow, its greatest needs will lie in energy and resources. Following a recent restructuring, the Company is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors. Sunwah International's strategy is to use investment activities strategically to generate advisory services revenue while creating value for its shareholders through asset accumulation.
Founded in 1990, the Company is listed on the Toronto Stock Exchange under the symbol SWH.
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws that are based on the beliefs of Management and reflect the Group's current expectations. These statements include, but are not limited to, statements made concerning our objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
Except as required by applicable law, management and the board of directors of the Company undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE: Sunwah International Limited
For further information:
Kristen Humphrey, Sunwah International Group, (416) 888-2323, [email protected] .