On 27 June 2013, the Company had entered into a facility agreement and a warrant instrument with Jinqiao in relation to a loan and warrant investment in Jinqiao (the "Jinqiao Agreements"). Under the Jinqiao Agreements, the Company provided a mezzanine facility having a total commitment of US$20 million to Jinqiao with a 20% interest rate per annum for 2 years. The Company also received the warrant issued by Jinqiao to entitle the Company to purchase the ordinary shares of Jinqiao at the exercise price of US$13.5 per ordinary share at any time before 27 June 2015 for an aggregate amount up to US$10 million. Under the Jinqiao Agreements, the proceeds were applied to providing working capital for the Golden Bridge after acquiring the shares of Zhongpin, Inc. for the purpose of privatization by way of a merger of Golden Bridge Merger Sub Limited, a wholly-owned subsidiary of Golden Bridge, into Zhongpin, Inc., with Zhongpin, Inc., the surviving entity after such merger.
On 30 June 2015, the Company had received the full repayment of the mezzanine facility (including all principal amount outstanding and accrued interest) from Jinqiao. Besides, on 30 June 2015, the Warrant had not been fully exercised. Subsequently, Jinqiao had paid to the Company the mandatory redemption amount in the amount of US$1.5 million which is equal to 15% of the exercise price for the unexercised portion of the Warrant, pursuant to the terms of the warrant instrument.