1. Event Occurrence Date: 2011/11/15
2. Company Name: LEATEC Fine Ceramics Co., Ltd.
3. Relationship with the Company [please indicate “the Company” or “affiliated company”]: The Company
4. Inter-holding Percentage: Not applicable
5. Background: Announcement of compulsory redemption of the Company’s 3rd domestic issuance of unsecured convertible corporate bonds
6. Responsive Measures: None
7. Other matters that need to be specified:
I. The Company's 3rd domestic unsecured convertible corporate bonds circulating balance is 152 shares (i.e., NT$15,200 thousand). According to the Paragraph 2 of Article 19 of the Regulations for Conversion of Third Domestic Unsecured Convertible Corporate Bonds of the Company, if the outstanding convertible corporate bonds balance is lower than NT$20,000,000 (10% of the original total issuance amount), during subsequent period, the Company may mail a copy of “Bond Redemption Notice” due in one month via registered mail (the aforementioned period shall start from the notice issuance date of the Company, and the expiration date of the period shall be the bond redemption base date, and the aforementioned period shall not be the conversion suspension period described in Article 10) to the bondholders (the roster of bondholders recorded 5 business days before the mailing date of the “Bond Redemption Notice shall be used), and Taipei Exchange shall also be informed in writing. In addition, upon the expiration of the period, all of the bonds will be redeemed in cash based on the par value of the bonds.
II. Pursuant to Paragraph 3 of Article 19 of the Regulations for Conversion of Third Domestic Unsecured Convertible Corporate Bonds of the Company, if a bondholder fails to complete the bond redemption procedure with the securities trading firm in writing before the bond redemption base date indicated in the “Bond Redemption Notice”, the Company may convert the convertible corporate bonds into common shares of the Company based on the conversion price at that time (current conversion prices is NT$20.6) and the expiration date of the notice period as the conversion base date.
III. Redemption amount of each bond: NT$100,000.
IV. Bond redemption schedule is as follows:
1. Redemption base date is the conversion base date: January 8, 2012.
2. Redemption period: December 9, 2011 ~ January 8, 2012. (Since January 8 ,2012 is a holiday, bondholders are requested to submit applications to the securities trading firm before January 5, 2012. Any late submission will not be accepted).
3. Bond application for listing deadline: January 9. 2012.
4. Date for issuance of redeemed bond amount: January 16, 2012.
5. Delivery date for converted common shares: January 16, 2012.
V. Bond redemption procedure: Since the corporate bonds of the company are issued without physical certificates, bondholders are requested to proceed to the securities trading firm for the bond redemption procedure and fill out the “Application Form for Conversion of Corporate Bond Account Transfer/Redemption/Reverse Repurchase” (and indicate “redemption”) for the application. After the securities trading firm receives application, it will then submit application with the Taiwan Depository & Clearing Corporation (TDCC). After TDCC accepts the application, it then submits to the stock affairs agency of the Company, the redemption is in effect upon the service of the application, and withdrawal of the application is restricted.
VI. The Company will redeem bonds in cash according to the par value of the bonds, and the Company will deduct postal fees and then mail payment via registered mail or adopt remittance method for payment to all applicants uniformly on January 16, 2012.
VII. Stock affairs agency of the Company: Registrar Agency Department of Capital Securities Corporation
Address: B2F., No. 97, Sec. 2, Dunhua S. Rd., Da'an Dist., Taipei City