Leon Inspection (01586.HK) announced the issuance of convertible bonds to its indirect wholly-owned subsidiary, Giga Industries, owned by the Greater Bay Area Investment Company. The principal amount is $3.8462 million (approximately HK$30 million), with an annual interest rate of 5%. The initial conversion price is $0.1923 per share (approximately HK$1.5), calculated in Hong Kong dollars at the same closing price as yesterday (26th), and all can be converted into 20 million shares, accounting for approximately 3.2% of the enlarged share capital of the company.

The company expects that the net proceeds from the subscription of convertible bonds will be approximately $3.8333 million (around HK$29.9 million), intended to be used to enhance its financial strength in areas such as environmental, social, and governance (esg) business expansion, and group internationalization expansion.

Furthermore, the company believes that raising funds through the issuance of convertible bonds will optimize its capital structure and liquidity, strengthen its financial position, broaden its capital base, and provide funding for its future development and expansion; and Giga Industries is interested in investing in the company, reflecting confidence in its business and growth potential.