Shanghai, August 16th - China's Shandong Nanshan Aluminum Co., Ltd. announced on Thursday that it intends to issue convertible bonds of no more than RMB 2.5 billion in segregated transactions for six years, raising funds for the construction of new alloy material production lines, etc. To optimize the company's aluminum industry chain structure.

The announcement published in the Shanghai Securities News pointed out that the subscribers of each bond can receive the warrants issued by the company at no charge, and the company will submit a proposal to the general meeting of shareholders to authorize the board of directors to raise funds in accordance with the market conditions and the expected rights of the warrants to be acquired. The amount shall not exceed the limit for the amount of the bonds to be issued, and the specific issue size and the number of warrants to be distributed shall be determined.

According to the announcement, the bonds will be paid once a year. The original shareholders of the company will enjoy a certain percentage of the preferential subscription rights. The original shareholders will give up the part of the placing and the remaining part will be issued to qualified investors according to market conditions. If relevant according to the China Securities Regulatory Commission If the regulations are to change the use of funds raised, the bondholder has the right to sell the bonds back to the company at par value plus the interest accrued for the current period.

The announcement pointed out that the ratio of exercise of the warrants attached to the issuance is 1:1, and the exercise price of each warrant is not lower than the 20 trading days prior to the date of the announcement of the convertible bonds of this separate transaction. The price and the average price of the previous trading day, the duration of which is 12 months from the date of listing of the warrants, and the exercise period is the last five trading days of the duration of the warrants.

The announcement also stated that the funds to be raised will be invested in a new alloy production line project with an annual output of 100,000 tons, an aluminum alloy ingot melting line with an annual output of 520,000 tons, an aluminum strip project with an annual output of 400,000 tons, and additional liquidity funds. The total investment is 1.275 billion yuan, 1.09 billion yuan and 2.276 billion yuan. The implementation of the above investment projects will help to further optimize the company's aluminum industry chain structure and expand the company's aluminum deep processing industry's market-leading advantages.

Nanshan Aluminum was suspended for an hour in early trading due to the announcement of the convening of an extraordinary general meeting, and closed at 28.06 yuan on Wednesday, a cumulative increase of 13.419% over the past month.