Gelonghui, May 14, 丨 Fubo Group (03738.HK) announced that on May 13, 2024, the company (as issuer) signed a subscription agreement with the investor Poly Platinum Enterprises Limited. According to this, the company conditionally agreed to issue to investors and investors conditionally agreed to subscribe for convertible bonds with a principal amount of about HK$160 million.
Assuming that no further shares have been issued or repurchased, based on the initial exchange price of the convertible bonds and assuming that all of the convertible bonds are converted according to their initial exchange price, the convertible bonds will be converted to 85.56 million shares, which is equivalent to approximately 3.77% of the issued share capital on the date of this announcement, and approximately 3.63% of the issued share capital expanded through allotment and issuance of exchange shares. The initial conversion price of the convertible bonds was approximately 15% higher than the closing price of HK$1.63 per share on May 13.
Convertible bonds will have a single interest rate of 3% per year on their outstanding principal amount, and must be paid every six months at the end of the period. Unless previously redeemed, converted or purchased and cancelled in accordance with the terms and conditions, they will expire at a maturity date of two years from the date of issue. It is estimated that the net proceeds from the issuance of convertible bonds by the company will be approximately HK$156 million, or the net issue price is HK$1.82 per share converted. The company plans to use the net proceeds from issuing convertible bonds to develop and invest in AIGC related businesses and repay interest-bearing loans.