CTF SERVICES (00659) plans to issue 7.8 billion Hong Kong dollars of 4.00% convertible bonds due in 2025.

CTF SERVICES (00659) announces that on January 15, 2025 (after trading hours), the company has entered into a subscription agreement with an agent. According to the terms and conditions of the subscription agreement, the agent, subject to certain conditions and individually (not jointly or jointly and severally) agreed to subscribe for or procure subscriptions and pay for the issuance of HK$780 million in principal amount of bonds by the company. The issue price of the bonds will be 100% of the principal amount, with a face value of HK$2 million per bond and its multiples. Based on the initial conversion price of HK$8.043 per share and assuming full conversion of the bonds at the initial conversion price, the bonds may be converted into approximately 96.9787 million new shares, representing approximately 2.426% of the company's existing issued share capital of approximately 3.998 billion shares as of the date of the announcement; and approximately 2.369% of the enlarged issued share capital after the full conversion of the bonds and the issuance of new shares. The new shares will be issued under general mandate and will rank pari passu with fully paid shares issued before the relevant record date, except for rights excluded by mandatory legal provisions. Holders of new shares issued upon conversion of the bonds will not be entitled to any rights prior to the relevant record date, other than those specified in the terms and conditions of the bonds. The bonds are intended to be listed on the Vienna Stock Exchange. The company has applied for approval for the listing of the bonds on the Vienna Stock Exchange and will apply for approval for the listing and trading of the new shares on the Hong Kong Stock Exchange. The net proceeds from the issuance are expected to be approximately HK$769 million. The company intends to use the net proceeds from the issuance of the bonds for general corporate purposes of the group, including but not limited to supplementing working capital and repaying the principal and interest of certain bonds and loans within the group.