China Metal Resources Utilization or CMRU (HKG:1636) agreed to issue HK$10 million of 9% convertible bonds maturing in six months to Top Legend, a Tuesday filing said.

The copper products manufacturer has also agreed to issue 1,171,318,053 shares to the vice president of its sales department at HK$0.0113 apiece. The number of shares and subscription price will be adjusted to 58,565,902 shares or HK$0.226 per share after the share consolidation.

The company is also proposing a share consolidation to consolidate every 20 issued and unissued shares of par value of HK$0.10 each into one consolidated share of HK$2 each. It will then reduce its issued share capital by canceling the paid up capital to the extent of HK$1.99 on each consolidated share, so its new par value is HK$0.01.

Following this, each authorized but unissued consolidated share of par value of HK$2 each will be subdivided into 200 new shares with a par value of HK$0.01 each.

Assuming full conversion and the completion of the share consolidation, capital reduction and share sub-division, the convertible bonds are convertible into around 46,238,938 shares. The conversion shares represent roughly 14.06% of the firm's enlarged issued share capital.