AUTO ITALIA (00720) intends to distribute up to 50 million new shares and issue convertible bonds with a total principal amount of HK$98 million.

AUTO ITALIA (00720) announced that on 13th February 2026 (after trading hours), the company has entered into a placement agreement with placement agents to place up to 50 million new shares at a price of HK$0.30 per share, representing a discount of approximately 11.76% to the closing price of HK$0.34 per share reported on the Stock Exchange of Hong Kong on the date of the placement agreement. The net proceeds from the placement are expected to be approximately HK$14.36 million, with approximately HK$7.18 million to be used for expanding the group's electric vehicle business and approximately HK$7.18 million for general corporate purposes. On the same day, the company also plans to issue convertible bonds to Unicorn Global Group Limited with a total principal amount of HK$98 million, at a preliminary conversion price of HK$0.34 per share. As of 13th February 2026, the group has outstanding debts to the subscribers totaling approximately HK$98 million. The directors believe that capitalizing the debt amount into convertible bonds will reduce the group's debt and leverage levels, strengthen its financial position, and provide additional working capital support for the group's operations and future development.