Lizhong convertible bonds face early redemption, investors urged to convert

Hebei Sitong New Metal Material has announced the early redemption of its "Lizhong Convertible Bonds," with the redemption price set at CNY 100.39 per bond, including accrued interest. The company’s stock price met the conditional redemption criteria outlined in its prospectus, triggering this action. Bondholders failing to convert their bonds by the redemption registration date of December 16, 2025, will have their bonds forcibly redeemed at this price.

Trading of the convertible bonds will cease on December 12, 2025, followed by the cessation of conversion rights on December 17, 2025, which is also the redemption date. The company anticipates redemption funds to reach the issuer's account by December 22, 2025, with investor accounts credited by December 24, 2025. Following redemption, the "Lizhong Convertible Bonds" will be delisted from the Shenzhen Stock Exchange.

The company cautions that a significant difference exists between the current secondary market price of the convertible bonds and the redemption price, urging bondholders to convert their bonds to shares within the specified period to avoid potential losses. Investors must have an open ChiNext trading account to convert bonds to shares.