Immunotech Biopharm Ltd announced that it has entered into security purchase agreement for the issuance of convertible bonds in the principal amount of CNY 300 million on October 28, 2022. The transaction will include participation from Tianjin Tasly Pharmaceutical Co., Ltd., Investment Arm. The bonds are convertible into maximum of 68,493,150 common shares of the company at initial conversion rate of CNY 4.38 per share, which represent approximately 13.31% of the existing issued share capital of the company and approximately 11.75% of the issued share capital of the company as enlarged by the allotment and issue of the conversion shares.

The bonds will bear interest rate of 6% per annum. The convertible bonds will be secured in nature and will be due in 2025. The transaction is subject to approval of all necessary regulatory filings with, notifications to and approvals of the relevant government authorities, the approval by the independent shareholders.