CORNERSTONE TEC (08391) plans to subscribe for equity of a Thai company and issue 200 million Hong Kong dollars convertible bonds to expand the electric vehicle charging business to Thailand.

CORNERSTONE TEC (08391) announced that on September 20, 2024, its wholly-owned subsidiary CB Asset One has entered into a ordinary shares subscription agreement with Spark. According to the agreement, CB Asset One conditionally agreed to subscribe for a total of 35.6% of Spark's ordinary shares on a fully diluted basis at a total subscription price of HK$180 million. Both parties agreed to enter into a joint venture arrangement upon completion. On the same day, the company entered into a convertible bond subscription agreement with subscriber Floryn Passie Limited, issuing convertible bonds with a principal amount of HK$200 million. The conversion price for each convertible share will be 80% of the 90-day volume-weighted average price or HK$0.50, whichever is lower. The initial conversion price for each convertible share is HK$0.50. Upon full exercise of the conversion rights attached to the convertible bonds, a total of 400 million convertible shares will be issued and allotted. The net proceeds of the convertible bond subscription of HK$199.5 million will be used for various purposes, including HK$180 million for Spark's capital expenditure and operating expenses for the construction and operation of over 600 electric vehicle charging stations at gas stations in Bangchak, Thailand; and the remaining HK$19.5 million for the group's general operating expenses. Spark, registered and surviving under Thai law since January 12, 2024, primarily engages in the electric vehicle charging business in Thailand. The directors believe that establishing the joint venture arrangement and collaboration with the joint venture partner will help the group seize opportunities to expand its electric vehicle charging business in Thailand. Leveraging the background and experience of the parties to the agreement and cooperation with Bangchak, Spark is expected to thrive in the electric vehicle charging business in Thailand. The group will gain a management edge and potential investment returns, thereby supporting the long-term operation and development of the group's electric vehicle charging business.