Unigroup Spreadtrum and RDA, a Chinese technology company, suggests that convertible bonds may trigger price adjustment clauses.
Wentai Technology announced that as of the close of trading on May 19th, the company's stock has closed below 85% of the conversion price of "Wentai Convertible Bonds" at 32.66 yuan per share for 10 out of the past 30 consecutive trading days. According to the prospectus of "Wentai Convertible Bonds", during the bond's tenure, if the company's stock closes below 85% of the current conversion price for at least 15 out of any consecutive 30 trading days, the Board of Directors has the right to propose a downward revision of the conversion price and submit it to the shareholders' meeting for approval. If the company's stock continues to meet the relevant conditions in the future, it may trigger the conversion price revision clause of the "Wentai Convertible Bonds".
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