Mr. Joel Chin reports

XINHUA MOBILE LIMITED EXERCISED OPTION TO PURCHASE CONVERTIBLE DEBENTURES OF GINSMS INC. FROM ONE HEART INTERNATIONAL LIMITED

GINSMS Inc. has provided an update to its press release dated April 2, 2015, headlined "Grant of an Option on Convertible Debentures of GINSMS by One Heart International Limited to Xinhua Mobile Limited."

On Jan. 15, 2015, One Heart International Ltd., the holder of convertible debentures of the corporation with a principal amount of $6,255,484, granted an option to Xinhua Mobile Ltd. to purchase the convertible debentures. The exercise price of the option is equal to the face value of the convertible debentures.

The corporation has learned that Xinhua Mobile exercised the option on May 1, 2015, and entered into a convertible debenture purchase agreement with One Heart to purchase the convertible debentures for total consideration of $6,255,484. The purchase price will be payable by way of a promissory note. The note will be due and payable six months from its issuance and will bear an interest of 18 per cent per year, compounded on a daily basis.

The convertible debenture are unsecured, mature on Sept. 28, 2015, and may be converted into common shares of the corporation at any time prior to their maturity at a price of 10 cents per common share, subject to certain restrictions.

About Xinhua Mobile

Xinhua Mobile is a 100-per-cent-owned subsidiary of Xinhua Holdings Ltd. The Xinhua Group is a multidisciplinary group headquartered in Hong Kong and doing businesses in China and the rest of Asia, including Japan.