iX Biopharma Ltd. announced that it entered into a purchase subscription agreement with new investor Lau Ho Ming Peter, to issue convertible bonds for, an aggregate of SGD 2,000,000 principal amount of interest-bearing convertible bonds on July 3, 2023. The securities are convertible into new ordinary shares in the capital of the Company. The securities issued have two years from the subscription Date.

The Company will, at least thirty days before the maturity date, give notice to the Subscriber of the maturity date and will make such announcements where applicable. The securities carry 9% per annum payable annually in arrears on 30 June each year. For the avoidance of doubt, all coupons/interests accruing on the bonds will be repaid by the Company in cash, and the Subscriber has no right to convert any coupon/interest into Conversion Shares.

Subject to and in compliance with the terms and conditions of the bonds in the subscription agreement and any applicable fiscal or other laws or regulations, the subscriber may exercise the right to convert the Bonds, in whole or in part, into Conversion Shares at any time on or after the date falling 30 days after the issue date of the Bonds up to the date falling 31 days prior to the maturity date. Subject to adjustments as set out in Subscription Agreement, each SGD 1.00 of Bonds can be converted into Conversion Shares at SGD 0.1337 per Conversion Share fractional entitlement to be disregarded. The Conversion Price represents a premium of approximately 47% to SGD 0.0910, being the weighted average price of the Shares for trades done on the Singapore Exchange Securities Trading Limited , for the full market day up to the Subscription Agreement is signed.

Subject to the Subscription Agreement, the bonds may be transferred in whole to any third party. For the transfer to be effective, the transferee should not be a person that falls within the categories of persons set out in Rule 812 of the Catalist Rules. However, no bondholder may require the transfer of a bond to be registered during the period of fifteen business days ending on the due date for any payment of any principal on the bonds, or after the certificate in respect of such bonds has been deposited for conversion pursuant to the Subscription Agreement.

The bonds constitute direct, unconditional, unsubordinated, and unsecured obligations of the Company, ranking pari passu and ratably without any preference or priority among themselves and will be subordinated to and rank after all the secured and unsecured obligations of the Company. The securities are redeemable at option of the company. The Bonds will not be listed or tradeable on the SGX-ST.

The expenses to be incurred in connection with the Proposed bonds Issuance, being professional and administrative fees, are estimated to be approximately SGD 119,000. This includes the fee payable to Crosby Securities in an amount equivalent to SGD 80,000 which will be paid by the Company to Crosby Securities Limited Securities following the completion of the Proposed Convertible Bonds Issuance.