NQ Mobile (NQ) Says Zhongzhi Hi-Tech to Purchase $220M in Convertible Notes in Private Placement

September 27, 2016 6:33 AM EDT

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NQ Mobile (NYSE: NQ) announced that Zhongzhi Hi-Tech Overseas Investment Ltd. agreed to purchase an aggregate principal amount of US$220 million of convertible notes issued by the Company through a private placement . The convertible notes will bear interest at a rate of 8.0% per annum from the issuance date and mature in October 2018. The convertible notes will be convertible, at the holder's option, into the Company's American depositary shares, each representing five Class A common shares of the Company, at a conversion price of US$6.00 per ADS, which represents a 51.5% conversion premium over the closing trading price of US$3.96 per ADS on September 26, 2016. Pursuant to the 2018 Notes, Zhongzhi Hi-Tech is entitled to appoint a director to serve on the board of directors of the Company, subject to certain conditions. Zhongzhi Hi-Tech has informed the Company that it intends to nominate Ms. Joanne Yan Zhu, currently chairwoman of Zhongzhi Hi-Tech Investment, to serve as a director of the Company. The parties expect the Transaction to be closed within 10 business days. The Company plans to use the net proceeds from this private placement for the repayment of existing convertible notes and general corporate purposes.



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