On September 27, 9月27日, leon inspection (01586.HK) announced that on September 26, 2024, the company entered into a conditional convertible bonds subscription agreement with Giga Industries Limited (as the subscriber, an indirect wholly-owned subsidiary of Greater Bay Area Common Home Investment Limited) under which the subscriber conditionally agreed to subscribe and the company conditionally agreed to issue convertible bonds. Pursuant to the terms of the convertible bonds subscription agreement, the company will issue approximately $3.8462 million (equivalent to HK$30 million) five-year 5% coupon non-listed convertible bonds.

Based on the initial conversion price of $0.1923 per share (equivalent to HK$1.50), the convertible bonds have the right to issue and allot up to 20 million shares of convertible stock when the conversion rights attached to the convertible bonds are exercised, representing approximately 3.3% of the company's issued share capital as of the date of this announcement; and through the issue and allotment of the shares arising from the exercise of the conversion rights attached to the convertible bonds, the dilutionwill be approximately 3.2% of the issued share capital. The initial conversion price is at par with the closing price of HK$1.50 per share reported on the Stock Exchange of this announcement)

The total amount raised from the convertible bonds subscription is approximately $3.8462 million (equivalent to HK$30 million). The net proceeds from the issue of the convertible bonds will be approximately $3.8333 million (equivalent to HK$29.9 million). The net proceeds from the convertible bonds subscription will enhance the group's financial strength for business expansion in environmental, social, and governance (ESG) as well as internationalization.