According to Leader Environmental Technologies, the conversion price of 10 cents per share represents a premium of 73.9% to the volume-weighted average price (VWAP) of the last trading day of the company prior to the announcement.
The company will not pay out any annual interest for the zero-coupon CB. The CBs have a three-year tenure with an option for Leader Environment Technologies to extend the maturity date by a further two years or less, reads the Oct 11 statement by Leader Environment Technologies.
Upon conversion, holders of the CB will own approximately 12.25% of Leader Environmental Technologies’ enlarged share capital.
Leader Environmental Technologies is an environmental protection solutions provider in mainland China. It is involved in research and development, design, manufacturing, assembly, installation and support services of environmental protection systems, primarily for industrial waste gas and wastewater emissions.
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According to the company, the investment will support Leader Environmental Technologies in building a portfolio of sludge treatment and artificial intelligence (AI) water management projects.
Li Li, CEO of Leader Environmental Technologies says, “we highly appreciate InnoVision Capital’s deep insights in the green economy space and their strong value creation capabilities with this agreement, which will bring us meaningful value to grow our business over time.”
“We are confident that the company will benefit from the nascent but large addressable market with high growth potential in Asia where there are inadequate treatments of sludge as well as higher energy costs to operate wastewater treatment plants efficiently to meet the high discharge standards,” says Lane Fu Zhao, founder and CEO of InnoVision Capital.
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Following the Oct 11 announcement, shares in Leader Environmental Technologies opened at 7.9 cents on Oct 12 after closing at 6.2 cents the day prior.
As at 2.55pm, shares in Leader Environmental Technologies are trading 0.9 cents higher, or 14.5% up, at 7.1 cents.
