Chinese e-commerce company 99 Wuxian Ltd. said Jan. 31 that its equity linked loan facility deed of A$250,000 with Investorlend Pty Ltd. was executed Jan. 22.
99 Wuxian said the loan, which bears an interest rate of 10% per annum, will be used to fund its general working capital.
Under the terms of the deed, the company issued 2.5 million call options with a maturity date of Jan. 22, 2021. Each call option is convertible into 1 CHESS depository interest that carries ownership of 1 share of the company.
The holder of the call options can redeem them upon payment of the exercise price pegged at A$0.10 per share. Proceeds from the exercise of the call options will be used to reduce the company's debt under the agreement.
