Business
MMTEC, Inc. Announces Private Offering in Asia of US$120 Million Convertible Senior Notes to be Issued by an Investment Fund Sponsored by MMTEC
BEIJING, Aug. 9, 2019 /PRNewswire/ -- MMTEC, Inc. (Nasdaq:MTC) ("MMTec" or the "Company") a China based technology company that provides access to the U.S.
About this update from Mmtec, Inc.
[{"type":"text","content":"BEIJING, Aug. 9, 2019 /PRNewswire/ -- MMTEC, Inc. (Nasdaq:MTC) (\"MMTec\" or the \"Company\") a China based technology company that provides access to the U.S. financial markets, announced the creation of a Cayman Investment fund (the \"Fund\") that is sponsored by, and will be managed by MM Capital, a wealth management subsidiary of the Company. The fund will effect a proposed private offering (the \"Notes Offering\") of US$120 million in aggregate principal amount of convertible senior notes due 2025 (the \"Notes\"), subject to market and other conditions including compliance with US, Cayman and BVI law and Nasdaq Additional Listing Requirements.\nThe Fund intends to use the net proceeds from the Notes Offering to acquire a yet-to-be determined clearing broker-dealer in the United States and to invest in other yet-to-be determined China-based new economy businesses. The proceeds will not be used for the operations or research and development of the Company. \nThe Notes will be senior, unsecured obligations of the Fund. The Notes will mature on April 10, 2025 and will be convertible by the holders, in whole or in part, into the Company's Common Shares at $8.50 per share, subject to traditional anti-dilution adjustment, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Interest on the Notes will be payable at maturity.\nThe Fund will engage independent auditors to audit the assets of the Fund annually. If the net asset value is less than 85% of the value at the time of acquisition, each Note holder will be able to require that the Fund to repay of all or part of the Notes in cash with interest, or that the Company convert the Notes into the Company's Common Shares. If the assets in the Fund are not adequate to pay the Notes then the Company will be obligated to fund those payments of the Notes.\nIn addition, after the Note maturity date, the Fund will liquidate; Note holders who convert their Notes into shares of the Company's Common Shares will receive distributions of the Fund's income (if any) in an amount equal to their pro rata share of 50% of the Fund's after deducting 2% of the company's annual management fee; and Noteholders that elect to have their Notes paid in cash will receive an additional payment from the Fund in an amount equal to their pro rata share of 20% of the Fund's...