GCL TECH (03800) subsidiary plans to issue $148 million convertible bonds with an annual interest rate of 6.95%.

GCL TECH (03800) announced that on April 29, 2026 (after trading hours), the issuer (a wholly-owned subsidiary of the company, XingXin Investment Limited of GCL-Poly Energy Holdings Limited), the company (as guarantor of the issuer), and the manager entered into an agreement. The issuer will issue convertible bonds with a total principal amount of $148 million. The issue price of the convertible bonds shall be 100% of the principal amount, with each convertible bond having a face value of $200,000. The initial conversion price is HK$1.21 per share, representing a premium of approximately 27.37% over the closing market price of HK$0.95 per share on the agreement date on the Hong Kong Stock Exchange. Assuming full conversion at the initial conversion price of HK$1.21 per share based on a fixed exchange rate, the convertible bonds will be convertible into 958,562,976 new shares. The conversion shares will represent approximately 2.89% of the company's existing issued share capital and approximately 2.80% of the enlarged issued share capital after the issuance of the conversion shares (assuming no other changes to the company's share capital). The net proceeds from the issuance of the convertible bonds are approximately $145 million, intended for general corporate purposes and debt repayment.