China Renji Medical Group Limited (OTCPK:CRNJ.F) announced a private placement of convertible notes for gross proceeds of HKD 10,000,000 on April 17, 2014. The round will include participation from not less than six subscribers comprising of individual investors and/or charity. The company and the subscribers signed the subscription agreement on the same date.

The notes carry a 5% interest per annum payable semi-annually in arrears. The notes have an initial conversion price of HKD 0.04 per share and will mature on the third anniversary of the issuance. The notes will be convertible into a maximum of 250,000,000 shares of the company representing 1.81% of the enlarged share capital.

In case the conditions precedent cannot be fulfilled on April 30, 2014, the subscription agreement may terminate, lapse and be of no further effect. The company expects to receive net proceeds of HKD 9,900,000 in the transaction. The closing of the transaction is expected to occur within 10 calendar days from the conditions being fulfilled.