Sino Grandness

[Wildreamz]

There lies my intrigue with the CBs. How do the auditors even know how to value these CBs when they have matured? Does anyone knows what is the status of these CBs? Matured? Defaulted? Restructured? Seems like it has just been conveniently rolled over like a revolver with no maturity date. I've never seen anything like this before... can someone confirm as I could be uninformed since I hadn't follow it for past 8 months or so.

The argument is of course CB holders wants to convert into GF stock... but do they have the right to exercise that "option" when the call already expired? I turned more positive on SinoG when the Chairman said they have cash and are going to pay back both CBs during the AGM last year. I think it would be huge positive if they do that cause it shows they have real cold hard cash and 2ndly it benefits SinoG shareholders not to share their crown jewel. From their cashflow statement it seems they haven't even started paying CB interest in cold hard cash.

UNAUDITED FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 (pg12)

Valuation of convertible bonds (“CB”) The CB holders are still in discussion with the Company to finalize the terms and details of the extension and/or partial repurchase of the convertible bonds. The structure of the CB will be revised in conjunction with the proposed listing of the Garden Fresh business segment. For the purpose of the valuation of CB as at 31 December 2015, the fair value of the CB will be made on the assumption that the extension is made up to 31 December 2016 of the CB while pending the finalisation of the terms of the CB. The Board will announce the revised valuation of the CB once the terms have been finalised.

(II)
Note A : The increase in finance costs relating to convertible bond is mainly due to the assumed extension of the CB to 31 December 2016. The increase in fair value of the option derivatives relating to convertible bond is mainly due to the fair value estimation of the convertible bonds which is assumed to expire by 31 December 2016.
Note B : The increase in finance costs relating to convertible bond is mainly due to the amortization of the liability component of the convertible bond for the year ended 31 December 2014. The increase in fair value of the option derivatives relating to convertible bond is mainly due to the fair value estimation of the convertible bond as at the date of the period under review.