Oriental Payment Group Holdings (08613) announced that on February 16, 2024, the company signed a subscription agreement with the subscribing party Blu Venture Partners, LLC. The company conditionally agreed to issue them to the subscribers, and the subscriberer conditionally agreed to subscribe for convertible bonds. The principal amount was HK$4.388 million, and the exchange price was HK$0.145 per share.
Assuming that there is no change in the total issued share capital of the company, after all convertible bonds have been converted from the date of this announcement, the exchange shares account for about 1.57% of the total issued share capital of the company after being distributed and expanded by issuing exchange shares. The exchange price of HK$0.145 per share is equivalent to the closing price of the shares as reported by the Stock Exchange on February 16, 2024 (the date of the subscription agreement) of HK$0.145 per share.
According to the announcement, the company's outstanding debt of US$561,100 (equivalent to approximately HK$4.388 million) was due to service fees for the bCode project, such as business development expenses, technical management expenses and IT technical support. This amount has been continuously overdue for some time. The company and the subscribers have agreed to refinance the debt amount by issuing convertible bonds. The decision was made after considering two important factors: extending the maturity date of the debt amount allows the Group to defer significant cash flow, giving it a reasonable time to improve its financial performance and net current liabilities; and maintaining a positive relationship with subscribers will allow the Group to continue to receive relief for its bCode operations.