Shen Yao seeking to raise at least $50 million

Shen Yao wants to expand into energy and new energy related businesses

Shen Yao Holdings has asked fund manager CSF Ventures to help raise between $50 million and $80 million.

Shen Yao, which used to be called LionGold Corp, now owns gold mines in Australia.

It now wants to expand into areas such as the extraction, production, storage, trading and distribution of energy and new energy.

"This will provide the company with the means to diversify returns and achieve long-term growth through new revenue streams and improve the group’s prospects, thereby enhancing shareholder value and profitability over time," says Shen Yao, which is now led by executive chairman Yao Liang.

Under terms of the MOU, the investors will put in their money for up to 5 years and enjoy a rate of 11% per year, to be paid every six months.

In addition, from the 37th month onwards, up to $30 million of the investment amount shall be converted into new Shen Yao shares at a 20% premium from the volume weighted average price of the shares for the last 5 trading days prior to the disbursement of the investment.

Shen Yao can choose to redeem and repay the investment amount at any time from the 37th month to the maturity date.

In the event Shen Yao exercises its right to an early redemption, the investors will receive a per annum return of 16%.

Shen Yao shares have been suspended for trading since March after its subsidiaries in Australia face action from creditors.


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