Gelonghui, March 26, 丨 China Biotech Service (08037.HK) announced that on March 25, 2024, the company entered into a placement agreement with Guoyuan Finance (Hong Kong) Limited (as placement agent). According to this, the company has appointed placement agents to distribute convertible bonds with a total principal amount of up to HK$88 million to no less than 6 undertakers. Such undertakers and their ultimate beneficial owners are independent third parties.

Based on the initial exchange price of HK$0.55 per share, when the share conversion options attached to the convertible bonds are fully exercised, a maximum of 160 million shares will be allocated and issued, which is equivalent to approximately 16.61% of the company's existing issued share capital and approximately 14.24% of the issued share capital expanded by the issued shares. The preliminary exchange price is about 34.15% premium per share over the closing price of HK$0.41 per share reported on the Stock Exchange on March 25 (the date of the placement agreement).

Assuming that all convertible bonds under the placement agreement have been placed, the total and net proceeds from the placement are estimated to be approximately HK$88 million and HK$86.8 million respectively. The net price of the exchanged shares is HK$0.5425 per share. The company plans to use the net proceeds of approximately HK$50 million to invest in boron neutron capture treatment projects; and/or the remaining balance of approximately HK$36.8 million for R&D costs and the Group's general working capital.