Global New Material International Holdings Limited announced a private placement of 3.5% coupon convertible bonds for gross proceeds of CNY 500 million on December 28, 2022. The transaction will include participation from new investor Hong Kong Boyue International Investment Fund Co., Limited. The company has entered into a conditional subscription agreement with investors in the transaction.

The bonds comprise the tranche A with principal amount of CNY 300 million and the tranche B with the principal amount of not more than CNY 200 million. The issue price of the convertible bonds shall be 100% of the aggregate principal amount. The convertible bonds are convertible into the conversion shares in the circumstances set forth in the conditions at the initial conversion price, which is subject to the adjustment events.

Based on the initial conversion price of HKD 7.6 (CNY 6.804015) and assuming full conversion of the maximum aggregate principal amount of CNY 500 million of the convertible bonds at the initial conversion price, the convertible bonds would be convertible into 73,026,316 conversion shares, representing (a) 6.13% of the total issued Shares as of the date of this announcement and (b) 5.77% of the total issued Shares as enlarged by the allotment and issue of the conversion shares. The company will pay issuance expenses of CNY 8.5 million and receive net proceeds of CNY 491.5 million. The bonds are constitute direct, unconditional, unsecured and unsubordinated.