Graphex group (06128.HK) announced on June 20th that it has signed a subscription agreement with subscriber Chen Stephen Hing Ming on June 20th, 2024. Accordingly, the subscriber has conditionally agreed to subscribe and the company has conditionally agreed to subscribe and issue 43.69 million shares of subscription shares in total, at a subscription price of HKD 5,461,000 (equivalent to approximately HKD 0.125 per subscription share, which represents a premium of approximately 3.3% over the closing price of HKD 0.121 per share on June 20th). The subscription shares account for approximately 4.71% of the company's existing issued share capital; and approximately 4.50% of the enlarged issued share capital after the subscription and issuance.

The subscription price of HKD 5,461,000 will be settled and cleared by the subscriber to the company at the time of delivery, and will fully offset the outstanding amount of USD 700,000 of loans from the subscriber to the company at the agreed exchange rate of USD 1.00 to HKD 7.80. Although the subscription will not generate any cash income for the company, it will eliminate the outstanding cost of USD 700,000 owed by the company to the subscriber and improve the company's overall liquidity position.