May 27, 2021 10:58 AM (GMT+8) · EqualOcean
Tianqi lithium said on the interactive platform that its subsidiary Tianqi lithium Hong Kong signed the variable prepaid share forward transaction contract with Morgan Stanley on February 11, 2019 and July 1, 2019 respectively. According to the contract, Tianqi lithium Hong Kong will charge part of the B shares of sqm company held by it to Morgan Stanley to obtain a three-year loan, and buy a put option equivalent to the amount of charged shares as a guarantee for the repayment ability of the loan, while selling a call option equivalent to the amount of charged shares to hedge part of the financing cost. At present, the profit and loss of fair value change of the project belongs to unrealized profit and loss, which will continue to be affected by the fluctuation of stock price and exchange rate.

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