The Bonds will bear interest from and including the Issue Date at the rate of 12.5 per cent. per annum. --- This looks like a very high interest charge.
The Company shall, through its wholly owned subsidiary in Shanghai, use all of the Subscription Price to:
• Set up a sales and marketing office and showroom in Shanghai (approximately RMB6.5 million, or 7%, of the Subscription Price);
• Set up self-owned flagship shops in Shanghai, with a target of 10 shops by the end of 2013 (approximately RMB33.5 million, or 33%, of the Subscription Price), and
• For use as working capital to secure the supply of apparel products with the Eratat group to support retail shops owned by the Group and by distributors approximately RMB60.5 million, or 60%, of the Subscription Price).