CHINA: China Water & Drinks signs private placement deal
China Water & Drinks has signed an agreement to raise US$50m through a private placement of convertible notes.
The Chinese bottled water producer and distributor said on Friday (25 January) that investors included Goldman Sachs, Liberty Harbor Master Fund and The Pinnacle Fund. The net proceeds will be used for acquisitions, the company said.
China Water & Drinks CEO Xinghua Chen said: ''We are extremely pleased with the successful raise of $50m. We believe there is a tremendous opportunity for us to expand our market penetration as Chinese consumers are increasingly choosing bottled water as their preferred choice of beverage.''
"The convertible notes will bear an interest rate of 5% per annum, payable quarterly in arrears beginning 31 March. The note will initially be convertible into shares of China Water and Drinks' common stock at a conversion price of $4.25 per share," added the company.
Late last year, China Water & Drinks posted a 75% leap in operating income in the three months to the end of September. The rise, to $5.6m, came on the back of an 80% soar in sales, to $18.5m.
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