Vobile Group (03738) has announced that before the trading session on October 21, 2026, the company, as issuer, entered into a subscription agreement with the manager.
Under the terms and conditions set out in the subscription agreement, the manager has agreed to subscribe for and pay for, or procure subscribers to subscribe for and pay for, the bonds to be issued by the company with an aggregate principal amount of HK$530 million.
Subject to the terms and conditions, the bonds may be converted into shares at an initial conversion price of HK$3.020 per share, subject to adjustment.
The initial conversion price of HK$3.020 per share represents a premium of approximately 10.0% over the last closing price of HK$2.745 per share as quoted on the Hong Kong Stock Exchange on the trading day immediately prior to the signing of the subscription agreement.
Based on the initial conversion price of the bonds and assuming full conversion of the bonds at the initial conversion price, the bonds will be convertible into approximately 175 million shares, representing approximately 6.29% of the issued shares (excluding treasury shares) as enlarged by the new shares issued upon full conversion of the bonds.
Upon completion of the bond issuance, assuming full conversion of the bonds into new shares at the initial conversion price and after deducting the manager's commission and other estimated fees and expenses related to the bond issuance, the estimated net proceeds from the bond issuance will be approximately HK$519.3 million, equivalent to a net issue price of HK$2.959 per new share based on the initial conversion price.
The company intends to use the net proceeds from the bond issuance to repay existing debt and for general working capital purposes.
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