Anchorstone Holdings Limited announced that it has entered into a subscription agreement for the private placement of 800 convertible notes at HKD 250,000 per note for gross proceeds of HKD 200,000,000 on June 10, 2022. The convertible notes, being 2% redeemable convertible notes convertible into the ordinary share, and constitute direct, unconditional, unsubordinated, and unsecured obligations of the company. The convertible notes do not confer any voting rights at general meetings of the company on the noteholders.

The company will receive net proceeds of HKD 183,800,000 from the transaction. Administration fee of 5.0% of the aggregate nominal value subscribed of each sub-tranche of the convertible notes issued. The convertible notes are fully converted at the conversion Price of HKD 0.19422 per share, which represents 90% of the average of the closing prices per share from 31 May 2022 to 7 June 2022.

The issue of the convertible notes will strengthen the financial position of the company by locking in the expected proceeds of at least HKD 20,000,000 over a term of 12 months. The closing of the transaction is subject fulfillment of all necessary approvals or consents by all regulating authorities.