CCT Telecom issues HK$100mln convertible notes at HK$0.85 each

CCT Telecom Holdings (0138) announced to issue HK$100mln convertible notes, which would expire in 2003, with dividend of 8%. The exercise price is HK$0.85 each. The exercise price has 5.6% discount to the closing price of HK$0.9 yesterday. If the convertible notes were fully exercised, the company should issue 118mln new shares, which account for 7% of the enlarged shares capital. The net proceeds is HK$100mln, HK$60mln of which will be used for the expenditure of the manufacturing business and the rest HK$40mln will be used for general operation capital. If the convertible notes were fully converted, the shareholding held by the chairman and relevant persons will decrease from 21.4% to 19.9%.

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