Chigo Holding Limited (SEHK:449) announced that it has entered into a subscription agreement for a private placement of 7% convertible bonds for gross proceeds of HKD 232,554,000 on June 22, 2015. The transaction will include participation from new investor, Chance Talent Management Limited. The bonds will carry a fixed interest rate of 7% per annum, payable semi-annually.

The bonds will mature in two years. The bonds will be convertible into 884,572,080 common shares at a fixed conversion price of HKD 0.2629 per share. The company will pay legal expenses and other expenses of HKD 1,554,000 in the transaction.

The company will receive net proceeds of HKD 231,000,000. The bonds will be issued at par value. The bonds are redeemable.

The transaction has been approved by the board of directors. Chigo Group Holding Limited and Li will act as guarantors in the transaction.