Kingold Jewelry, Inc. announced that it expects to receive $1 million in funding
August 25, 2019
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Kingold Jewelry, Inc. (NasdaqCM:KGJI) announced that it has entered into a securities purchase agreement for a private placement of two 5% convertible redeemable note due August 26, 2020 for gross proceeds of $1,000,000 on August 26, 2019. The transaction will include participation from two private accredited investors for one note of $500,000 each. The notes carry a fixed interest of 5% per annum, and will mature on August 26, 2020. The notes are convertible into common shares at a conversion price of $3 per share for the first 180 days following issuance. After that, the notes may be converted for a price equal to 70% of the lowest closing price of the company’s common share, $0.001 par value per share during the ten trading days immediately prior to the delivery of an exercise notice. The notes are exchangeable. The notes are issued at an original issue discount of 3%, for principal amount of $1,030,000. The company will also issue warrants exercisable into 400,000 shares at an exercise price of $0.75 per share. The warrants are exercisable from issuance and expire two years from the date of issuance. The company will receive net proceeds of $840,000 from the transaction.
Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The Company develops, promotes and sells a range of products to the jewelry market across the People's Republic of China (PRC). The Company offers a range of in-house designed products, including, but not limited to, gold necklaces, rings, earrings, bracelets and pendants. The Company also sells investment gold products through banks in China. The Company sells its products directly to distributors, retailers and other wholesalers, who then sell its products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores.