Sanai Health Industry Group Company Limited announced that it has entered into convertible bonds subscription agreements for private placement of 72 convertible bonds for HKD 1,000,000 per bond for gross proceeds of HKD 72,000,000 on January 13, 2022. The transaction will include participation from with individual investors Zhi Shao Huan subscribing for HKD 41,040,000 of convertible bonds and Jiang Heng Guang for HKD 30,960,000. The convertible notes will be convertible up to the maximum of 605,042,016 shares at a price of HKD 0.119 per share, representing approximately 19.73% of the issued share capital of the company and approximately 16.48% of the issued share capital of the company as enlarged by the issue of the conversion shares upon full conversion of the convertible notes.

The closing of the transaction is subject to approval of board of the company. The estimated proceeds from the issue of the convertible notes are expected to be approximately HKD 71,700,000. The bonds will mature on the first anniversary of the issue date being unconditional, secured and unsubordinated obligation and bears interest of 3% per annum payable in arrears on a semi-annually basis.