China Biotech Services Holdings Limited announced it has entered into a subscription agreement for private placement of convertible bonds for the gross proceeds of HKD 77,800,000 on December 20, 2022. The transaction will include participation from returning investor Guoyuan Securities Investment (Hong Kong) Limited. The bonds are issued at par value, non-transferrable, unconditional and unsubordinated of the company bearing an interest of 8.25% per annum on the principal amount outstanding from and including completion date, payable semi-annually, with the first payment to be made on June 20, 2023.

The bonds are convertible into 54,137,931 shares at a price of HKD 1.45 per share. The bonds are convertible from the date falling 9 months after the completion date up to the maturity date. The company shall redeem all outstanding convertible bonds held by the subscriber on the maturity date at the Applicable Redemption Amount.

The convertible bonds may not be redeemed at the option of the company unless with the prior written consent of the subscriber. The bonds will mature on the last day of the 730-day period commencing from the completion date, which may be extended for two years if the company and the subscriber agree in writing.