08220.HK announced that it entered into a subscription and settlement agreement with controlling shareholder Stephen Chow to issue 19 million convertible bonds to it at a consideration of offsetting the principal amount of outstanding existing bonds upon completion of the subscription, including a total outstanding principal of $15 million of existing convertible bonds and a further $5 million of maturing convertible bonds.
The conversion share price is initially 0.0275 yuan per share, a premium of about 14.58% over the closing price of the previous trading day, which can be adjusted according to the subscription terms. If exercised, it is equivalent to 40.23% of the enlarged share capital.