CHINASILVER TEC (00515) proposes to issue a total of 16.066 million shares for a premium of approximately 132.56% with a net fund raising of approximately HK$15.8 million.

CHINASILVER TEC (00515) announced that on December 27, 2024, the company entered into a subscription agreement with a subscriber to issue convertible bonds for a principal amount of HK$16.066 million. Based on an initial conversion price of HK$0.10 per share, upon exercise of the conversion rights attached to the convertible bonds, the company will issue a total of 16.066 million convertible shares, representing approximately 12.42% of the enlarged share capital (assuming no other changes in issued share capital between the announcement date and the conversion period of the convertible bonds). The initial conversion price of HK$0.10 represents a premium of approximately 132.56% over the closing market price of HK$0.043 per share on the Stock Exchange of Hong Kong on December 27, 2024. Net proceeds from the issuance of the convertible bonds are expected to be HK$15.8 million. The company intends to use approximately HK$14 million of the net proceeds to repay group's outstanding loans and payables, while the remaining HK$1.8 million will be reserved for the Group's working capital to cover general expenses such as salaries, rental payments, professional fees and office expenses.