Dayang Group (01991) announced that on July 3, 2023, the company entered into a subscription agreement with subscribers.
Accordingly, the company has conditionally agreed to issue and the subscribers have agreed to subscribe for convertible bonds with a total principal of HK $40 million. Based on the initial exchange price of HK $0.257 per conversion share, the Company will allot and issue a total of approximately 156 million conversion shares upon the exercise of the conversion rights attached to the Convertible Bonds.
The initial exchange price of HK $0.257: 2.8 per cent over the closing price of HK $0.250 per share on the day the subscription agreement was signed, the notice said. The total and net proceeds from the issue of convertible bonds are expected to be HK $40 million. The company intends to apply the net proceeds to the business development of the Group and to meet its working capital requirements.