By Sherry Qin


MOG Digitech Holdings' shares fell sharply early Friday after the company terminated plans to issue convertible bonds.

Shares plunged 77% to 18.30 Hong Kong dollars, their biggest percentage decline since the company's listing in April 2020. Despite the sharp fall, the stock's price still is almost double year to date.

The financial technology company said on Sept. 15 that it entered into a subscription agreement with SEB Holdings for a private placement to issue convertible bonds worth 50 million Hong Kong dollars (US$6.4 million). The bonds would have been convertible to 769,231 shares at HK$65 a share. Then on Thursday, it said its plans to issue convertible bonds were terminated, as some conditions couldn't be fully satisfied.

MOG Digitech planned to use 70% of the net proceeds for account-receivable financing or factoring services in China and 30% for daily operation purposes in Hong Kong.

MOG Digitech is a fintech company that provides yuan solutions for the insurance industry and engages in business-to-business yuan hardware trading.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

09-21-23 2310ET