On July 31, 2024, Cornerstone Tec (08391.HK) issued an announcement stating that it had entered into a convertible bond placement agreement with the placement agent (i.e. Jian Quan Financing Co., Ltd.). Under this agreement, the company and the placement agent of the same bank agreed to use their best efforts to persuade no less than six subscription recipients (who will be independent third parties) to subscribe to convertible bonds totaling HKD 34.45 million at 100% of the convertible bond principal issue price in cash.

Assuming full exercise of the conversion rights attached to the convertible bonds, based on a preliminary conversion price of HKD 0.53 per share of convertible stock, the company will issue and distribute up to 65 million new shares, which is equivalent to approximately 7.18% of the total number of issued shares as of the date of this announcement; and the total number of issued shares, which will be enlarged by the issuance of 65 million shares of convertible stock, is approximately 6.70%. Assuming all convertible bonds are successfully placed by the placement agent, the net proceeds from the placement of convertible bonds will be approximately HKD 32.7 million, which will be used by the company for capital expenditures for Hong Kong electric vehicle charging projects and general operating capital of the group, providing greater flexibility for the company's future cash management.