Disqus
China-based KongZhong Corporation announced that it has reached a non-binding agreement with Nokia Growth Partners to receive an investment of about $6.8 million in 5-year convertible senior notes. In addition, Nokia’s venture arm would also receive warrants to purchase an additional 2 million American Depositary Shares (ADS) at $5.0 per ADS, exercisable within five years.
From the press release:
The convertible senior notes would initially pay an annual interest of 8% subject to reduction to 6% based on the financial performance of the Company. The conversion price would equal the average closing price per share of the Company’s ordinary shares for a period of 75 trading days prior to the date of this announcement. The notes would mature in five years and could be prepaid at the Company’s option after three years. The transaction is subject to completion of definitive documentation.
Commenting on the announcement, Nokia Growth Partners’ Paul Asel: “KongZhong is a premier mobile entertainment company. Our investment reflects the belief in the leading role KongZhong can take as China embarks on 3G mobile services.”
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
