SMM Flash News: JL MAG Rare-Earth Completes $117.5M H-Share Convertible Bond Issuance

[SMM Flash News: JL MAG Rare-Earth Successfully Completes $117.5 Million H-Share Convertible Bond Issuance] JL MAG Rare-Earth (300748.SZ/6680.HK) recently announced that its overseas wholly-owned subsidiary, JL MAG Rare-Earth Green Technology (Hong Kong) Co., Ltd., has successfully issued convertible corporate bonds with a total amount of $117.5 million, a maturity of five years, and a coupon rate of 1.75%. These bonds can be converted into the company's H-shares. This issuance marks another H-share financing activity following the company's placement of H-shares to its controlling shareholder and independent third parties, raising HK$210 million.

The initial conversion price of the convertible bonds has been set at HK$21.38 per H-share, representing a premium of approximately 10% compared to the trading day when the subscription agreement was signed (the day when the H-share closing price was HK$19.44). If all bonds are converted at the initial conversion price, approximately 43,141,406 H-shares will be generated, accounting for approximately 18.95% of the total issued H-share capital of the company at the time of signing the subscription agreement and 3.14% of the company's total issued share capital.

After deducting issuance expenses, the company expects to receive a net amount of approximately $115 million. This funding is planned to be used for repurchasing H-shares, supplementing working capital, repaying debts, and covering the company's daily operating expenses.