SUNSHINE OIL (02012) plans to issue 98,494,300 shares at a discount of about 5% for debt-to-equity conversion.

SUNSHINE OIL (02012) announced that on September 6, 2026, Hong Kong time, the company entered into a debt-to-equity swap agreement with its creditors. Under this agreement, the company will allocate and issue relevant shares to each creditor as a full and final settlement of their debts. The issue price is HKD 0.171, representing a discount of approximately 5% compared to the closing price of HKD 0.180 per share reported by the Stock Exchange of Hong Kong on September 4, 2026. Assuming there are no further issuances of new shares or repurchases, the relevant shares will approximately account for 12.16% of the company's enlarged issued share capital immediately following the completion of the issuance. As of the date of the debt-to-equity swap agreement, the company owes creditors a total of HKD 16.8425 million. This payable amount will be settled by the issuance of 98.4943 million relevant shares. The companys directors believe that paying off the debt by issuing shares will not result in a significant cash outflow for the company, while also reducing the companys liabilities. Therefore, the directors consider the terms of the debt-to-equity swap agreement to be fair and reasonable, and that this issuance is in the overall interest of the company and its shareholders.