INDIGO STAR (08373) proposes to issue 2.105 million shares to Red Sun at a discount of approximately 19.84% to fully and finally settle the outstanding debt.

INDIGO STAR (08373) announces that on 6 October 2026 (after the trading hours of the Stock Exchange), the Company entered into a settlement deed with Red Sun, pursuant to which Red Sun agreed to accept, and the Company agreed to allot and issue, 2.105 million new shares at an issue price of approximately HK$0.7335 per share as settlement shares, in full and final settlement of the outstanding debt, being the outstanding professional service fees and advances payable and owed by the Company to Red Sun for the period from 1 January 2026 to 30 September 2026 in respect of corporate services, financial management services and acting as financial adviser to the Company, totaling HK$1.544 million. The 2.105 million settlement shares represent approximately 3.87% of the total number of issued shares as enlarged by the allotment and issue of the settlement shares. The issue price of approximately HK$0.7335 per share represents a discount of approximately 19.84% to the closing price of HK$0.9150 per share as quoted on GEM on the date of the settlement deed. Upon the Listing Committee granting approval for the listing of, and permission to deal in, the settlement shares, and upon completion and the allotment and issue of the settlement shares, the outstanding debt shall be deemed to have been fully settled and discharged, and the Company's obligations in respect thereof shall be fully discharged. Red Sun will not make any further claims against the Company in respect thereof.