New Concepts Holdings Limited announced that it has entered into subscription agreements to issue convertible bonds for gross proceeds of HKD 29,998,080 on September 13, 2023. The transaction will include participation from individual investor, Shen Ding for HKD 19,998,720 and from Hong Kong Million Investment Group Limited for HKD 9,999,360. The transaction has been approved by the board of the company.

The bonds carry fixed rate of interest of 5% per annum and is payable annually on December 31st every year starting from December 31, 2023. The bonds will mature on the date falling two years after the completion date of the issuance, and will be redeemed at 100% of the principal amount outstanding on the maturity date, unless previously converted or cancelled. The bonds are convertible any time on or after the issue date until 7 days prior to the maturity date of the bonds, into not more than 47,616,000 shares of the company at a conversion price of HKD 0.63 per share.

The number of conversion shares converted each time shall not be less than 4,000,000 shares, and of a multiple of 200,000 shares if more than 4,000,000 shares. The bonds are redeemable at maturity and are not transferable. The company may at any time during the period from 6 months after the issue date of the relevant tranche and prior to the maturity date of such tranche, having given not less than 30 days irrevocable notice to the Subscribers, redeem all but not part of the principal amount of the convertible bond plus the interest accrued.