Adamas Finance Asia sells Global Pharm – On 15 September 2017, Adamas Finance Asia entered into a sale and purchase agreement with Fortune Insight Limited for the sale of its 75% interest in the company through which ADAM holds its interest in Global Pharm for US$15.6 million in cash. This is payable by Fortune within 120 days of 15 September 2017.
In February 2014 as part of a reverse takeover, Adamas acquired a 75% interest in Blazer Delight, which was a special purpose vehicle holding a convertible bond issued by Global Pharm. At that time, the Global Pharm Interest was independently valued at US$22.4 million (net to Adamas). Adamas has received payments of approximately US$6.0 million since the acquisition of the interest which is now being sold for US$15.6 million.
In the audited accounts for the year ended 31 December 2016, the carrying value of the Global Pharm Interest was US$17.3 million. As the negotiated sale price for the Global Pharm Interest is below the current carrying value, completion of the transaction will result in an accounting loss of US$1.7 million which will be recognised in the results for the six months ended 30 June 2017.
ADAM : Adamas Finance Asia sells Global Pharm