Baofeng Modern International Holdings Company Limited announced that it has entered into a subscription agreement with D&A Performance Limited for private placement of convertible bonds for gross proceeds of HKD 100,000,000 on April 20, 2021. The bonds will be issued at par and will mature immediately following the expiry of two years from the date of issue of the convertible bonds. The bonds will bear 5% per annum interest rate. The bonds will be convertible into 16,366,612 shares at a fixed conversion price of HKD 6.11 per share. For the conversion, the bondholder have the right at any time during the period commencing from the date falling three months from the date of issue of the relevant convertible bond up to 4:00 p.m. on the day immediately prior to and exclusive of the maturity date. The bondholder may at any time before the maturity date by serving at least fourteen days prior written notice on the company with the total amount proposed to be redeemed specified therein, demand the company to redeem the convertible bond at par upon the occurrence any of the event of default as defined in the terms of the convertible bonds. The company paid expenses of HKD 220,000 in the transaction. The transaction is subject to all necessary consents and approvals required to be obtained on the part of the company and the subscribers in respect of the subscription agreement. The transaction will be completed within 30 days.