SouthGobi (01878) completed the issuance of shares for physical interest under the convertible bonds.

SOUTHGOBI (01878) announced that it has issued a total of 73,497,622 shares of common stock ("physical interest shares") to Star Moon Infinity International Trading Limited ("transferee"), representing approximately 19.83% of the total issued and outstanding common shares after the completion of the issuance of physical interest shares to meet the physical interest payment requirement. The number of physical interest shares to be issued is based on an average price of approximately CAD 0.3272 per common share (equivalent to USD 0.2313) as of the 50th trading day before the issuance date. The physical interest shares are issued to the transferee based on a transfer agreement. According to the transfer agreement, JD Zhixing Fund L.P. has transferred the rights to receive the transferred physical interest to the transferee. USD 2 million of the transferred physical interest has not been paid, and under the terms of convertible bonds and certain related deferred agreements, the transferee may request the company to issue common shares to settle the remaining transferred physical interest, with the issuance amount equal to the remaining transferred physical interest divided by the average price of common shares as of the 50th trading day before the date of the request by the transferee.