Longrun Tea Group Company Limited (SEHK:2898) announced that it will issue convertible bonds for gross proceeds HKD 64,800,000 on December 9, 2016. The company will issue bonds to not less than six places. The bonds will bear interest at the rate of 5.5% per annum and will be payable semi annually in arrears and will mature on after two years from the issuance. Based on the initial conversion price of HKD 0.262 per share, 240,000,000 conversion shares will be allotted upon exercise in full of the conversion rights attaching to the bonds issued. The company will raise net proceeds of HKD 62,800,000 in the transaction after paying agent fee and other expenses. The transaction is subject to fulfillment of certain conditions.