China’s Emerald Dairy has amended its offer to exchange outstanding warrants for those exercisable at reduced prices in a bid to raise cash to complete its Hailun City production facility.
The company said today (27 July) that existing holders who acquired their warrants in connection with company’s October 2007 private offerings, can exchange them with amended terms.
The offer will expire on 13 August.
Amended terms include; the holders of warrants with an exercise price of $0.94 per share, may exchange some or all for amended warrants exercisable at $0.75 per share. Warrants with an exercise price of $1.50 per share, may exchange for amended warrants exercisable at $1.20 per share.
In addition to the lower exercise prices, the amended warrants have shortened exercise periods, are exercisable even if the exercise will cause them to own more than 9.9% of the company’s common equity, and must be exercised for cash.
The purpose of the offer is to raise additional capital by encouraging participating warrant holders to exercise the amended warrants they receive in connection with the offer, by significantly reducing the exercise prices and exercise periods of the amended warrants.
The company said it intends to apply any proceeds towards the cost of completing the construction and equipping of its new production facility in Hailun City, Heilongjiang Province.
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