CHK OIL (00632) terminates the general authorization to issue new shares.

CHK OIL (00632) announces that on June 29, 2026, the company and the placing agent have mutually agreed to terminate the placing agreement in accordance with the terms of the agreement. Following the termination of the placing agreement, all obligations of the parties under the placing agreement will cease, and the parties are not entitled to make any claims against each other in relation to the placing agreement, except for (i) settlement amount of approximately HK$730,000, being the full and final settlement of all amounts payable by the company to the placing agent in connection with the placing agreement (including all costs and expenses incurred by the placing agent in relation to the placing matters); and (ii) excluding any prior breaches of the placing agreement. The company entered into a loan agreement with Sinowise on March 13, 2025, under which Sinowise agreed to provide the company with an unsecured and interest-free credit financing of HK$15 million, repayable by October 12, 2026. On July 31, 2025, the company and Sinowise entered into a first supplementary agreement to increase the credit limit to HK$30 million, with the terms remaining unchanged. As of the date of this announcement, the outstanding principal amount of the loan owed to Sinowise by the company is approximately HK$13.97 million. The original plan of the group was to use the net proceeds from the placing for the repayment of part of the outstanding loan principal to Sinowise by July 21, 2026. On June 29, 2026, Sinowise and the company entered into a second supplementary agreement to extend the repayment date of the remaining outstanding balance of the loan to December 31, 2026. Considering that the company no longer urgently needs funds to repay the loan, the directors believe that terminating the placing agreement is in the best interests of the company and shareholders. The directors believe that the termination of the placing agreement and the proposed placing matters have no significant adverse impact on the business operations and financial condition of the group. The company may consider further fundraising activities in the future, after taking into account the future development of the group and market conditions. The company will make further announcements in accordance with disclosure requirements when any relevant fundraising opportunities are finalised.