China First Chemical Holdings Limited (SEHK:2121) announced that it has entered into subscription agreement for a private placement of guaranteed convertible bonds with new investor, Chance Talent Management Limited for gross proceeds of $15,000,000 (HKD 116,352,100) on July 25, 2016. The company will issue two bonds at a price of $2,250,000 (HKD 17,452,800), for proceeds of $4,500,000 (HKD 34,905,600) and five bonds at a price of $2,100,000 (HKD 16,289,300) per bond, for proceeds of $10,500,000 (HKD 81,446,500). The bonds are redeemable and constitute direct, unconditional, and guaranteed obligations of the company. The company may on or after the first anniversary of the issuance redeem all or any portion of the bond in full prior to the maturity date, or, if the original maturity date is extended to the final maturity date, by giving not less than 30 days’ prior written notice. The bonds will have a maturity of 24 months from issue date. The bonds will be issued at par. The default rate of interest is 20% per annum, payable in cash. The bonds will be convertible into a total of 55,283,840 common shares at a conversion price of HKD 1.9205 per share for 30% of the principal amount and at a conversion price of HKD 2.1949 per share for the remaining 70% of the principal amount. The conversion shares will represent 6.45% stake in the company. The currency conversion was done using www.oanda.com as of July 25, 2016.