LIAONING, China (
A-Power Energy Generation Systems
announced on Thursday morning that it had signed conversion agreements with the holders of its convertible notes issued on June 19, 2009.
Thursday's morning pre-market action showed a marginally positive move, but that was reversed with minutes of the market open, as A-Power shares dropped more than 2%.
A-Power's debt-to-equity ratio had risen significantly over the first three quarters of 2009, to approximately 10% of total assets.
The $37 million outstanding under the convertible notes will be exchanged for 4.6 million A-Power common shares, using a conversion price per share set at $10.21.
The $10.21 price represents 96% of the original conversion price of the convertible notes of $10.64.
"As a result of this conversion of the convertible notes, the company strengthens its balance sheet by replacing debt with equity," said Jinxiang Lu, A-Power's CEO, in a statement.
-- Reported by Eric Rosenbaum in New York.
>>A-Power Shares Trade Wildly
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