Risecomm Group (HKG:1679) entered into an agreement with some creditors to issue a mix of debt and equity to settle outstanding loans, according to a Wednesday filing with the Hong Kong bourse.
The power line communication products provider's shares gained 69% in late-morning trade Thursday.
The firm will issue 69.8 million shares priced at HK$0.46 apiece and three-year convertible bonds worth HK$128.5 million to the creditors.
The company simultaneously launched a public offering to raise funds to settle certain other loans.
The firm is seeking investors for 85.9 million shares priced at HK$0.46 each, or HK$39.5 million in total, which will be used to repay loans owed to Fu Xiaoqin, a shareholder, and an entity identified as Clear Jolly.
The transactions are subject to shareholder approval.