Huayi Tencent Entertainment (00419) announced that on March 7, 2024, it intends to issue convertible bonds with a total principal amount of not more than HK$120 million to United Strength LS Limited. The subscribers will subscribe in two batches based on the total principal amount (i.e. Batch A bonds with a total principal amount of HK$60 million and Batch B bonds with a total remaining principal amount of HK$60 million), with an annual interest rate of 10% per annum. The initial exchange price was HK$0.1014, which is approximately 0.4% premium over the closing price of HK$0.101 per share on March 7, 2024. It is estimated that the net proceeds from the issuance of convertible bonds are approximately HK$118 million, to be used as its general working capital.
Assuming that all of the convertible bonds were converted at an initial exchange price of HK$0.1014, the convertible bonds would be converted into approximately 1,183.4 million exchange shares, accounting for about 8.01% of the expanded share capital.