FangDD to issue US$34.3 mln convertible note for asset acquisition

* Fangdd Network Group (NASDAQ:DUO [https://seekingalpha.com/symbol/DUO]) said on Friday it will issue a US$34.32 million convertible promissory note to an investor through a private placement to meet payment obligations under an asset purchase deal signed on September 29.
* The note, maturing in 364 days and bearing no interest, can be converted into Class A ordinary shares at US$1.0409 per share, or will automatically convert on maturity if not earlier exercised, the China-based property technology firm said.
* To maintain its corporate structure following a potential conversion, FangDD also agreed to sell up to 12,731 Class C ordinary shares to ZX International Ltd, a company controlled by CEO Xi Zeng, at a price based on the average closing price of its Class A shares over the 15 trading days before closing.
* Both transactions are exempt from U.S. registration requirements under the Securities Act.
* Source: Press Release [https://seekingalpha.com/pr/20278881-fangdd-announces-us-34320-000-convertible-note-issuance-in-connection-with-asset-acquisition]

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