INSILICO (03696): It is recommended to issue a $305 million zero-coupon convertible bond maturing in 2027.

INSILICO (03696) announced that on August 27, 2026 (after trading hours), the company has entered into a subscription agreement with the underwriter, pursuant to which, subject to the fulfillment of certain conditions contained therein, the company has agreed to issue, and the underwriter has agreed to subscribe for and pay, or procure the subscribers to subscribe for and pay, a total principal amount of $305 million in bonds. The initial conversion price is HK$58.07 per share, representing a premium of approximately 23.5% over the closing price of HK$47.02 per share reported on the Hong Kong Stock Exchange on August 27, 2026 (the date of the subscription agreement). Assuming full conversion of the bonds at the initial conversion price of HK$58.07 per share, the bonds can be converted into approximately 41,174,700 shares, equivalent to about 7.07% of the companys issued share capital as of August 27, 2026 (the last practical date prior to the publication of this announcement) and approximately 6.60% of the enlarged issued share capital of the company after full conversion of the bonds. Upon completion of the bond issuance, the total proceeds from the subscription of the bonds will be approximately $305 million. After deducting the underwriter's commission and other estimated expenses related to this offering, the net proceeds from the subscription of the bonds will be approximately $302 million. The company intends to use the proceeds as follows: (a) approximately 40% of the net proceeds will be used to fund clinical trials for self-developed candidate drugs; (b) approximately 30% of the net proceeds will be used to expand the groups R&D team; (c) approximately 15% of the net proceeds will be used to fund the development and training of frontier scientific SOTA foundational models; and (d) approximately 15% of the net proceeds will be used to supplement working capital and for other corporate purposes.