On June 27, 2024, New Focus Auto (00360) announced that the company has reached a placement agreement with its placement agents. Accordingly, the company has appointed placement agents to place convertible bonds with a total principal amount of up to HKD 400 million to no less than six placing persons (including their ultimate beneficial owners, who are independent third parties) on a best efforts basis. The bonds carry an annual interest rate of 8% and an initial conversion price of HKD 0.145 per conversion share, which represents a premium of approximately 43.56% over the closing price of HKD 0.101 per share on the day of announcement.

Based on the initial conversion price of HKD 0.145 per conversion share, the company will issue and distribute up to approximately 2.7586 billion conversion shares upon full exercise of the conversion right attached to the convertible bonds, representing approximately 16.02% of the company's existing issued share capital.

Assuming that all the convertible bonds under the placement agreement are placed, the net proceeds of approximately HKD 395.6 million will be used as follows: 50% for business expansion and research and development, 35% for operation, and 15% for debt repayment.