NetDragon (00777) has announced a warrant placement agreement with a placing agent dated September 17, 2026, under which the agent will endeavor to place up to 60 million warrants with independent third-party placees and their ultimate beneficial owners, where applicable.
Each warrant carries the right to subscribe for one subscription share at an initial subscription price of HK$8.28 per share, subject to adjustment. Assuming full exercise of the subscription rights attached to all 60 million warrants and no other changes to the company's issued share capital, a maximum of 60 million subscription shares would be allotted and issued, representing approximately 11.29% of the existing issued share capital (including 5.1623 million treasury shares), approximately 11.40% of the existing issued share capital (excluding treasury shares), approximately 10.15% of the issued share capital enlarged by the allotment and issuance of subscription shares (including treasury shares), and approximately 10.24% of the enlarged issued share capital (excluding treasury shares).
Assuming the maximum number of warrants is placed at the issue price, the total gross proceeds and net proceeds from the warrant issuance would be approximately HK$6 million and HK$4.2 million, respectively. The net proceeds from the warrant issuance are expected to be used for the company's general working capital, including salaries, rental expenses, and other office costs.
Should the subscription rights attached to the maximum number of warrants be fully exercised at the initial subscription price, the company would raise additional gross proceeds of up to approximately HK$496.8 million. The total net proceeds from the placement and the allotment and issuance of subscription shares are expected to amount to approximately HK$501 million, intended to be utilized as general working capital for the group, including the development of its AI business and general corporate purposes.
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