Adamas Finance Asia realises BRJ investment

AIM-traded Adamas Finance Asia Ltd (ADAM) realised one of its investments on Wednesday, announcing that the Greater China Credit Fund (GCCF) had acquired the Renminbi Qualified Foreign Limited Partner vehicle (RQFLP) of BRJ China Credit Fund.

GCCF was launched by Adamas Asset Management HK in August 2013, with a strategy of providing high-yielding credit finance to operationally strong companies, primarily in China.

BRJ, meanwhile, was launched by Adamas HK to provide asset-backed, structured loans to Chinese small-to-medium enterprises in need of short term bridging finance not easily available in China.

The company confirmed it committed $1m to GCCF on its launch in 2013, and a further $3m in September 2015.

Its RQFLP vehicle had local government approval over a quota of $50m, which enabled it to provide finance to companies in mainland China using funds raised or generated offshore.

In April and July 2014 the company made two investments into BRJ, totalling $800,000.

Since those investments, it had received distributions in cash totalling $87,735 and as a result of the acquisition, would receive $840,000 in cash in respect of its holding in BRJ.

“The company had planned to make further investments into both GCCF and BRJ as cash is realised from the existing ADAM portfolio, including the delayed redemption of the interest in Global Pharm Holdings Group,” the company’s board said in a statement.

“The company has been notified that, following the acquisition, GCCF will be closed for further investment. Therefore, the directors do not expect to make any further investments into GCCF or BRJ.”