Victory City International Holdings Limited (SEHK:539) announced that it has entered into subscription agreement for private placement of 5% convertible bonds due 2019 for gross proceeds of HKD 400,000,000 on April 25, 2017. The bonds will mature after 24 months from the issuance. The bonds are convertible into 1,333,333,334 common shares at initial conversion price of HKD 0.3 per share subject to adjustments representing 24.12% of issued share capital. The transaction will include participation from existing investors Pearl Garden Pacific Limited and Madian Star Limited for HKD 200,000,000 each. The company will receive net proceeds of HKD 397,000,000 in the transaction. The convertible bonds bear interest at the rate of 5% per annum payable semi-annually on June 30 and December 31 of each year. The bonds are redeemable on its maturity. The long stop date for the transaction is October 24, 2017. The transaction is subject to various conditions including shareholders’ approval, approval from Listing Committee, and others. On July 10, 2017, the company amended the terms of transaction. The conversion period of the Conversion Bonds from commencing from the Business Day immediately following the first anniversary of the Issue Date to commencing from the Issue Date.